I do believe i found the solution for the wifi connectivity issue, at least its what worked for me. It is related to Bluetooth. By default it appears that "to improve location accuracy" bluetooth scanning is enabled. So when you are not paired with a bluetooth device, it is constantly scanning to "improve location". You can see this by opening up bluetooth (when not paired) and you will see the scanning animation next to the on/off slider. To disable this feature, go to Settings > Location > Improve Accuracy > Bluetooth Scanning : turn it off.
Hope this resolves the issue for others as well.