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There is no obligation that you remain living and working in Canada during the processing of your application.
However, you will not be granted your PR status until you reenter with the intent of establishing Canada as your permanent residence.
Let me know if you need any further clarification.
There is no law that requires it and more often than not the applicant is not in Canada while a PR application is in process.
You should contact the call centre and ask what will happen if you move to live with your spouse who is currently in the US while you await the processing of your application.
You can say that you are not working in the US but just want to live with your spouse.
You have to keep calling them because Canada Immigration changes their rules, policies, and procedures so constantly that it is hard to be sure what they will do next. So ask them what you should do about your passport and the application process while you are living with your spouse in the US.
There are no guarantees in immigration law but, there are no grounds to reject an application for PR status simply because you are living with your spouse during the application processing time outside of Canada, as there is no requirement to remain inside of Canada during the application process.
Yes you can.
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