Thanks for the information. Its a tricky situation as I do not want to jeopardize my US VISA as well
Lol, you are writing on water. Your wife's H1b needs to be selected through lottery first. Next it should get approved. RFEs and denials are crazy these days.
Assuming your wife's H1b gets picked in lottery, you have couple of options here:
1) Hope for your passports to be returned before April 1, and you could take your trip by then.
2) Have your attorney filed the case as consular processing. If her H1 sponsor is legit employer, they would have no problems doing this. There is no restriction to travel when H1b is pending if this route is taken. Once the H1 is approved, she needs to get stamping from home country and come back. If the sponsor is desi consultant, they won't agree to this option and if that is going to be the case the petition approval chances are close to 0.
3) Have the petition filed as change of status and wait for the result. If the petition doesn't make through the lottery, you are all good and can travel before August. Results are known by May. If it gets picked, you can still go out and come back. There are no risks to the actual petition doing this except that she needs to go through consular mode to get her H1 activated. Only change of status would be considered as abandoned, not the actual H1 application itself. There is zero risk in doing this too. As I mentioned earlier, if the employer is legit there should be no problems in having someone go for stamping first time.
With no green card in sight, honestly H1b has no future. USCIS is getting very strict about employer-client model and getting a contract has become a huge huge challenge. I am not sure what could be done even with a successful H1 outcome with so much uncertainties involved in getting a project.