IPO can always get results before any notices are sent out from USCIS. Right now IPO is waiting for the hardcopy of the approval notice and then plead again for removing the gap of "8 months unauthorized employment"!
-It seems the H1 petition was approved without the I-94 due to your h1 was revoked and thus, you need to get the H1 outside US (Canada in this case) to activate your H1 status. My suggestion is that you may just go to Canada to get the h1 visa to come back to activate your H1 status and this is the simplest way. After you get the h1 visa, your illgal work record will be removed automatically and nothing will affect your future status or green card application. Also, because you have the unexpired I-94 and that means you are lawyfully present even if your H1 status was mistakenly revoked. Another thing is that the US Consulate will never know you worked illegally. This kind of record only checked by USCIS when they make a decision on your future I-485. So, do not worry about that. of course, you can consult with the school about your cost for the visa applicaiton trip to Canada.
You may consult your lawyer before you take any actions.
