Why has my wifi Icon on my Notification Bar turn Grey After updating Google Play Services?

A

AC Question

WiFi Icon on Notification Bar turns Grey After updating Google Play Services.

The problem first started as I was experimenting with various applications from Google Play. The WiFi turned grey, but the internet connection was strong and the download speed was same as before. ( I ignored it ). As I installed snapchat, I realized that I've not been getting my messages. I had to go to the app and refresh manually everytime. All the Google Services work. It's just that the applications like snapchat don't give me notifications.. I did some testing and found out that the app gives me notifications on a data connection. I tried different WiFi connections and all of them show a grey WiFi icon. I searched some places and tried the following :
1. Full Factory Reset.
2. Cleaning the cache from recovery mode.
3. Turning Air Plane mode On-Off.
4. Trying different WiFi
5 Turning the Router On-Off.

After a lot of testing I deduced that it is the new Google Play Services, that is causing the problem. I uninstalled the updates, and the WiFi turned blue. I updated the app and the WiFi turns grey again. Many of the Google Services need the Google Play Services, but if I install the Google Play Services, my applications don't refresh automatically. (check for messages, if you will)

Is there any way I can fix Google Play Services on my phone?

I am running a Unrooted, Stock Android 4.2.1

Thanks in advance.. :)
 

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