Does anyone know how to deal with this?

I am a graduating student with I-485 pending. My status is AOS since I used AP. I will go to a university for a postdoc. I am asking the school to apply an H1B visa. The school said I only can get the H1B visa outside of US, but my attorney said that I can get it inside US. The following is the response of the school to my attorney's letter:

It is this school's position that a change of status application from within the U.S. to H-1B is NOT recommended when the underlying nonimmigrant status has been abandoned, even when someone is pending adjustment of status. Furthermore, since xxx no longer has F-1 nonimmigrant status, how would your firm recommend completing the I-129 since it is not technically a change of status application? How would you describe this type of application on the I-129 since the nonimmigrant status has been abandoned?

Look like the school doesn't know how to fill the I-129 form.

Does anyone know how to deal with this situation?

They have argued this for more than month.

Please help. Thank you so much.