~~Multiple posts edited to removed attachments with personal information showing.~~
Mod hat off
The letter from the DMV is not unusual and happens a lot. It just means they can't find you in the system, try again later. Happened to me with my K1 took more then a couple of weeks, thinking maybe a month. Wish I could remember exactly, but I've slept since then. It happens a lot with K1's who change their last name before they file for AOS. The system is not smart enough to look for maiden name searches. Name changes are one of many reasons why it can't find someone. My guess it is your address change that is contributing to the system failure. If you haven't updated your address yet do so now. If you have call and check to see if it has actually been updated.
Now with your going back and forth about authorized stay vs legal stay you are correct they are not the same. But most of the time it's only an issue if you leave the country before you complete your AOS. Since all that time you were here out of status is right back where it was previously and lands you with an overstay. Now since you want to work in one of the few fields that require you to be a permanent resident or USC, you have come to find out that authorize and legal are not equal. That's a bummer and nothing to do but wait it out.