回复：现在的情况

So your HR is correct. Your transfer was rejected so you don't have a new I-94 with the I-797. You should stop working now, get the ORIGINAL I-797 from company, and go to Canada/Mexico or home country to get a H1 visa stamp. You don't have a valid I-94 now and you need to get a new H1 I-94 by re-entering US with H1 visa stamp. At the port of entry, you will get your new H1 I-94 and start your new, transfered status.