After looking at this further,I see where the issue lies.I had no idea the restrictions on K1 visa holders extended to K2 visa holders and only hypothesized that it should have been possible.It really does suck that such restrictions exist on K2 visa holders as I thought the only other non-immigrant group this extended to was Crewman visas.

It is true that it seems almost impossible for K2 visa overstays to adjust status due to the restrictions placed on them but I wonder if you ever tried talking to your lawyer about this case.