Please clean uninstall from device manager all drivers related to the Intel® Dual Band Wireless-AC 7260, make sure all files are removed completely, then restart the process again beginning the installation by the Bluetooth drivers. Access this link for installation: Intel® Download Center - Let us know if this helped you.
The above picture is not related to any error!
I'm afraid to say that I forgot to "RTFM" even tough it's only a large sheet of paper. After connecting the antenna everything works just fine...
In my embarrassment I'm prepared to take a public lashing (hope it's only going to be by tongue) at anytime. I'm sorry for any inconvenience I might have caused.