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Wouldn't the wife have to move to the US within six months once she's approved for the green card?

I recently learned about "commuter" green cards, which let folk live in Canada or Mexico: https://www.uscis.gov/ilink/docView/SLB/HTML/SLB/0-0-0-1/0-0...

That's a good summary but essentially one needs to demonstrate frequent and regular trips to the US for employment to qualify.

Yes, assuming that she went the immigrant visa route through the US Embassy in Mexico rather than the adjustment route through USCIS.