First of all, thank you. You have been helping others a lot.
My question: if I go by J application, it will take about 3-4 months for J to be effective. During this process, I need to maintain my status as F-1 student.
-You do not need to keep the F1 status after you file I-539 for change of your status form F1 to J1 if you do not want to.
However, if any other offer comes with H1 package, can we still withdraw the J application and go for H1 B as long as it is not approved or the visa is not issued?
-Yes techincally. But sometimes USCIS may not cancel it for you, so you need to contact USCIS from time to time to make sure USCIS has cancel your J1 application already.