All they do is to waste the applicants time(patience test) by regarding their applications as the 20% that must exceed the official processing timeline, while they meet up with the other 80% within the 12 months frame.
In fact, they just keep them aside indirectly through transfers from one place to another, to be called upon in a future date. Some at the 14th, 15th or 16th month, some at the 18month or more.
Meanwhile, when they call up the applications for further processing, they may ask for additional documents( thesame way they asked for additional documents from other applicants that were approved within the 12 months),
- call for clarifications( they same way they called for clarifications for other applicants they had approved within 12 months,
schedule a relationship interview to get Landing letters same day.
or just go ahead to DMs and send Landing interview letters.
You know they would always want to justify the time wasted. Any application that is a, or almost a NO NO for them, would have received a procedural fairness letter or something similar before the 12 months, or on the same day they are considering the application for further assessment.
In reality, the penalty for being out of status is the time wasted in the process of the transfers for further assessment.