If your H1 I-94 does not expire yet, you are legal to stay in US. - I could not think it would be true.
When anyone is OOS, the unexpired I-94 does not help his legal status or legal stay. Say Wang Wu has a pending I-485 but no any nonimmigrant status, upon denial Wang Wu is supposed to leave within 30 days although his AP I-94 may be good through 9 months later.
The unexpired I-94 may protect him from accruing days towards 3/10 year bar though.
-In my opion, Wang Wu is lawfully present as the Parolee status even if his I-485 denial in this case. The parolee status relys on the Parolee I-94 obtained at the port of entry, and thus it is irrelevant to his I-485. How long he can stay in US is decided by the CBP officer, not USCIS, in this case. So, Paroleee status is not AOS. Of course, he can not use the AP any more in the future.