Getting Australian visa while in US with valid H-1B status, Advance Parole card (I-512), but expired H-1B visa stamp

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Australian consulates in the US will surely understand that is not necessary to have a valid visa in the passport in order to be in the US legally. After all, the Australian consul and other consular officers are, like you, living in the US in a nonimmigrant status.

You can read the sentence you quoted as "Give details of why the applicant is at their current location, including the end date of their current immigration status." Include your current I-94 and I-797 approval notice along with any evidence of your pending AOS application, including the I-512.

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