WHY they denied ur I485? - That's the most important Q to determine ur appeal.
If ur LCA, I1340 and I485 all were legitimiate, and filed and processed properly. There might be no ground for them to reject ur AOS.
USCIS constantly made erroneous decisions. DAOs are not legal professionals but they play with law under USCIS roof freely. Therefore, they could be wrong in applying the wrong law, in misinterpretion of the law or misreading the facts.
If ur lawyer can find an issue or section of law, a fact, or even USCIS interim rule that may help your case, u still have a chance to beat it.
Currently H1B has reached its cap. even if you applied H1B outside of US, it hard to tell w/ you will get it.
One thing for sure is that you have to disclose that you have applied AOS when you applied your visa. Yes, H1B is dual intent, however, the risk of being denied H1B in China is always there. Yes many people may be luky to get their H1B visa when travel outside of US and their AP and EAD are done as a backup. Remeber, there is no
No matter what kind of suggestions people may give you here, none of us actually read ur file.
If I were u, I would talk to at least three lawyers to see what they say about the chance of appeal. Ask the lawyer the following question:
1. why they denied?
2. whether the deny is based on rules or laws properly applied?
3. what's possible defense you may have?
Appeal cost varies from $500 to $2000. Money is not an issue if you can win, choosing a responsible lawyer is key.