They need to go back to their home country and apply for H4 visas. They are accruing Unlawful Presence so they must leave before they accrue 180 days of Unlawful Presence. Otherwise they will be subject to a bar of inadmissibility. Either that or if you can file a new adjustment if status under a new basis before they have accrued 180 days of being out of status or working without authorization then that may be an option although probably the riskier option. You need to consult with your attorney or a new attorney.
Memphis, TN Immigration Lawyer
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Your wife and daughter will have to leave the US and reenter in order to gain back status. They will need a valid visa to return. You should have the circumstances for the denial of the I-485 reviewed by an attorney before they leave.
I agree with my colleagues. Your wife and daughter need to return.
This answer is only for general information purposes. It does not establish an attorney-client relationship. The answer I gave is based only on the facts that you have presented in your question and might change if the facts are different.