You are arguing semantics and peculiar archaic ones at that. It is not prohibited. It is permitted. In fact it is so common that Congress had to pass AC21 to mitigate the damage caused by indefinite backlogs in the H-1B->GC pipeline. A majority of employment based greencards are issued to people in the US through adjustment of status. The purpose of the system is what it does.
> You are arguing semantics
Yeah, law is about semantics. And semantics reflects underlying politics. Immigration proponents never had the political capital to enact a law that actually reflects current practice.
I just told you that AC21 (https://en.wikipedia.org/wiki/American_Competitiveness_in_th...), which is appropriately named, is a recent law that reflects current practice.