Thanks for the answer.
We did not file I-485 with the upgrade status letter.
-That is why USCIS was confused.
Should we do that? We thought we need to upgrade the status with the USCIS first, then file I-485 after receiving confirmation from the USCIS.
Do you mean we can directly file the I-485 with the letter which request upgrade status?
-Yes, your spouse needs to file I-485 together with your request of I-130 upgrade (enclose I-130 approval notice or filing receipt, your US citizenship certificate, etc.).
Send the whole packet to the following address:
USCIS Chicago Lockbox For U.S. Postal Service (USPS) deliveries: see: USCIS For Express mail and courier deliveries: USCIS
PO Box 805887
Chicago, IL 60680-4120
Attn: FBAS
131 South Dearborn - 3rd Floor
Chicago, IL 60603-5517
Thanks.