Cancelled without prejudice means that it could be an administrative mistake from US consulate or a duplicate visa in your passport.
US visa can be cancelled by US embassy with a stamp “Cancelled without Prejudice“.
Cancelled without Prejudice does not have any bad affect on your future or existing US visa applications. It does not mean that you did anything illegal. Do not worry. You are safe.
If you are going for an H1B visa interview and you currently have a valid H1B stamp in your passport, then the visa officer can cancel your current visa with annotation “Cancelled without Prejudice” as they are going to issue you a brand new H1B stamp. The duplicate visa stamp is what will be marked as cancelled.
It is possible that some US consulate do not cancel the old visa before they approve the new one.
US visa cancelled without prejudice is not serious. You are safe and can enter US with a new visa or any other valid visa in your passport. Cancellation without prejudice does not affect your chances of US visa in future.
The cancellation only means that you may have a duplicate visa or the visa was issued in error.
You cannot enter US with a visa that has been cancelled without Prejudice.
You cannot fix or rectify the US visa that was cancelled without prejudice. Once the visa is cancelled, it cannot be fixed.
You have to get a new US visa to travel and enter USA.
Cancelled Without Prejudice Reasons
The cancellation reason varies by each US embassy as many people have reported that their B1/B2 tourist visa got cancelled when they got approved for H1B work visa while some other reliable source’s tourist visa was not cancelled and they were working in US using L or H visa.
Some consulates also stamp the expired visa with “Cancelled without Prejudice” stamp which is kind of not required. You cannot use an expired visa to enter US anyway.
It is also possible that H4 visa is cancelled if the H1B primary no longer has valid permit to work in US.
Several people have shared their experience for US visa Cancellation without Prejudice.
Form 221g with Visa Cancelled Without Prejudice
US visa officer can issue you form 221 administrative processing at the time of visa interview (with DS160) and still cancel your existing valid US visa.
This is a normal process and nothing to worry. Your visa interview result will not be affected by the cancellation of existing visa.
Can I use My other US visa in Passport if One is Cancelled?
You can use any other valid US visa to enter USA if other has been cancelled.
Stamping in Mexico or Canada
If you are currently in US and thinking of going to Mexico or Canada for your visa stamping like F1, H1B, H4 or similar visa, then you will not be able to come back to US if your new visa is not approved and current one has been “cancelled”.
Note that you cannot use the Automatic Visa Re-validation to enter US from either Mexico or Canada if your visa has been cancelled without prejudice.
Couple of people have reported that they were able to enter US from Nogales, Mexico border while their H1B visa application was pending with form 221g processing, but this depends highly on luck and the individual immigration officer at port or entry.
The US embassy may cancel one or more visas at their discretion.
If US consulate cancels your existing H1B but leaves your B1/B2 tourist visa intact, you can enter US using B1/B2 visa.