Eligibility Credit for Unpaid Spouse's Service?

401k Safe Harbor Profit Sharing Plan with 1 Year of Service (12 mos 1000 hrs) wait, dual entry.

Owner's wife started assisting owner Jan 2020 with business. When Covid hit in March 2020 her services increased significantly and remain so to current (1000+ in each year). Spouse was not paid in 2020 or 2021 but was paid W2 wages in December 2022 and permitted to contribute 401k as an eligible Participant in the Plan. It is not clear to me if there were financial reasons the business did not pay the spouse in 2020 and 2021, and not sure if that necessarily matters.

Question:

Though her prior services went unpaid, is the Plan permitted to count her prior years' hours of service for eligibility purposes? I have read through many articles that debate the fine nuances of this and a reference from an ASPPA conference Q&A from more than 10 years ago. I am hoping someone may know of something more recent. (if so, she would have been eligible 7/1/2021 with $0 415 compensation, no contribution due)

The Plan defines Hour of Service as:  "Hour of Service" means (a) each hour for which an Employee is directly or indirectly compensated or entitled to compensation by the Employer for the performance of duties during the applicable computation period (these hours will be credited to the Employee for the computation period in which the duties are performed); (b) each hour for which an Employee is directly or indirectly compensated or entitled to Compensation by the Employer (irrespective of whether the employment relationship has terminated) for reasons other than performance of duties (such as vacation, holidays, sickness, incapacity (including disability), jury duty, lay-off, military duty or leave of absence) during the applicable computation period (these hours will be calculated and credited pursuant to Department of Labor regulation §2530.200b-2 which is incorporated herein by reference); (c) each hour for which back pay is awarded or agreed to by the Employer without regard to mitigation of damages (these hours will be credited to the Employee for the computation period or periods to which the award or agreement pertains rather than the computation period in which the award, agreement or payment is made). The same Hours of Service shall not be credited both under (a) or (b), as the case may be, and under (c).

To note, the State exempts the spouse from minimum wage requirements.

Thank you.