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In our case as explained above, I consider the whole processes to be automatic.

OK, I see the confusion - you meant something different by automatic than I thought you did. Having said that:

YES, we did have to go through the filing processes (piles of papers, bank/credit card statements, rental agreements, etc.), YES we had to pay all sort of fees...

This whole process is called a status adjustment. (Form I-485 is an application to adjust status). I took your earlier post as arguing that a status adjustment was only necessary for the conditional-permanent step, and not for the initial application for conditional residency.

(And while I-485 is pending, you definitely are in a kind of limbo state, with more rights than you had before but still fewer rights than a full or conditional permanent resident).
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