Just pay the fee and resend the package as they requested. After that apply for the restoration of status. When you apply for the restoration, one of the questions is if and when you have applied for any other VISA/PR.... So they will know that you have applied for PR and restoration, no need to inform them.Thank you ! Surely going to do that.
And any thoughts on if I should make changes before I resubmit the OWP as per instructions? Maybe add the proof of application for restoration of status ? Or a new and updated forms ?