Consular processing means that you need to apply for the H-4 visa in a US Consulate in China. I don't understand what the lawyer did for you. There is no such an application to USCIS for change of status to H4 using Consular processing because after your spouse get the H-1 staus, you just need to go to China to get the H-4 visa directly in a US Consulate there, not need to do anything to USCIS within US.
If you don't want to go to China, you just need to file I-539 to change the O3 to H4 within US by providing the copy of your spouse's H-1 approval notice or receipt notice before October 1. Talk to the lawyer that you don't want to get the visa in China, but change your status to H-4 within US.
