to get new I-20 from language school, the first school that her visa is
based on needs to release her on SEVIS. If she can get that, it's fine. Or
it's a violation of F1 status for not registering the first school.
Are you a US citizen? If so, her status doesn't matter, she can file I-485
even with no legal status. If you are not USC, her violation will count to
out-of-status or even illegal days and may prevent her from filing I-485(
depending on eligibility category).