Troubleshoot Wi-Fi Tethering Android 5.1

[cadesdefy]

I searched for help unsuccessfully. If I missed a post that offers help, please refer me to it.

I have an unrooted first generation Motorola X. It has recently been factory reset. When I enable Wi-Fi tethering and I can see the wireless connection but none of my devices can connect to it.

Windows Devices say "Cant connect to this network"
Android Devices just never say connected

Troubleshooting steps I have already taken

1- Reset adapter (On windows)
2- Rebooted (both phone and computer)
3- Uninstalled and Reinstalled newest driver for PC
4- Successfully tethered this PC to a different phone on same plan using Wifi Tethering
5- Successfully tethered this PC to this phone using USB Tethering
6- Attempted using 5ghz vs 2.4 ghz
7- Attempted using no security vs WPA2

Any ideas what else I can do to troubleshoot this?

 

[imnuts]

Running the stock firmware? If not, what are you running? What model Moto X do you have?

 

[TeslaZap]

I can confirm this.
Moto X - 1060 DE on Verizon. Stock firmware
OTA update to 5.1 broke tether in the way mentioned. Wifi appears to cycle on and off repeatedly such that you may be able to occasionally catch it, but the connection is not maintained if it even ever gets a chance to complete.
AT&T cancelled their roll-out without explaining why, but I would not be surprised if this may be one issue

Edit: LG-G3 had the same issue. http://forum.xda-developers.com/tmobile-lg-g3/general/lollipop-tethering-t3071188