You can always try. I am not a huge proponent of these types of actions but I do not think they would hurt you.

Pending asylum and married Green card holder

To expand on my colleague's answer, you can leave the United States and apply for consular processing if you are not inadmissible and lucky enough...

Does I-140 petition for non-Indian/Chinese get approved faster ?

Timing it takes for the approval is not really connected to the country of origin. Priority is.

Can i apply for my citizenship without having answer for some of the question on the form N-400

Chances are the N 400 will be rejected as incomplete.

J1 visa and B1/B2 both at the same time on 221G AP

You have to wait for the consulate to figure out whatever they are seeking to figure out about you before any of the changes would become relevant.

Can I renew my driver's license with change in status approval or do I need my visa stamped?

I agree with the colleague. I am not sure what is the connection between eligibility for DL in your state and the visa sticker in your passport.

Can I work with my L2 EAD when COS for L1b to H1b is approved but L2 to H4 is pending adjudication ?

No you do not have the L2 the moment your spouse does not hold the L1.

Whats the best to avoid employment break for dependent on L2 EAD when switching to H4 EAD ?

There is no best option here. It is likely you will have a break.

What to do if I can't get arrests records in home country when applying for Naturalization?

Your best option would be consulting with an immigration lawyer.

What is the best route and way to apply for spouse paperwork for US while she is a Canadian PR?

You do not need to wait and do not need to bring her in. You can apply and seek consular processing.