you will lose H-1 status after uding AP but

The office is write. The memo exactly means that Your status will be PAROLEE not H-1B any more. But you can still work for same employer. You'd better to extend your H-1 with current employer to come back to H-1 status, then transfer to another H-1B if you need to change job.
This is gray area. It is not sure, if you can directly transfer to another H-1B with new employer without extending H-1 with current employer.