she has trouble

a person's status is the last approval from cis. once the h1b was approved, she had been on h1b. no longer f1. you said she stays in the university - it may be a F1 or H1 in the university. But even it is a university h1, that h1 is void once the small company h1b was approved. last approval is always her status.

Now she does not work for that h1b sponor. That's a violation. She needs to act now to get a new valid status. If it has been less than 180 days she still can later adjust by 245(k). it sounds like > 180 days (from last 10/1 to this date). She may have trouble in 485 stage.