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I made a phone call today and I have no idea why is this happening but NVC told me my case falls under F2B when queried. I got the same answer from USCIS as well. Does that mean for some how my case didnt get transferred from F2B to F1?

I am planning to file in I-485 once my PD becomes current but are they going to change my category from F2B to F1 when my case kicks off? Should I hold my i-485 until F1's cut-off date also hits my PD to save the application fee?
-I don't know the details of your case, and you had better consult your lawyer. Normally if your sponsor has got  the US citizenship, your sponsor needs to inform USCIS to upgrade the I-130 from F2B to F1 category in writing. The F2B does not work anymore in this case. You of course also can file I-485 when the PD is current based on F1 category with the upgrade request letter from your sponsor (if the sponsor has not requested the upgrade yet) and the copy of his/her US citizenship certificate.

Thank you advance for answering my question!