Well that was short lived, problem returned at reboot and persisted even after restoring Windows to an earlier time.
Read elsewhere that disabling HT Mode in advanced properties may help.
It did and internet connection was restored but wireless speed was only 54mbs
Reenabled HT Mode and internet connection remained now with 300mbs wireless speed.
It would seem that many people are having issues with the 7260, I don't even know what HT mode is but toggling that seems to have resolved my issue for now.
It has even survived a restart of the PC.
The High Throughput mode (HT) is a feature of 802.11n, this improves the connection rates and avoids collision when 802.11a/b/g devices are operating in the same WiFi channel. VHT mode is a similar feature for 802.11ac.
If your router is 802.11n, and you do not use 802.11ac, then it may be good to use HT mode.
Please review the following documents for additional details:
The HT setting adds some fields in the header of the Network frame that are readable by legacy devices to allow coexistence.
This way, if the adapter is operating in 802.11ac or 802.11n, it can avoid conflicts with devices that use 802.11a, 802.11b, 802.11g in the same wireless channel.
There are many factors involved in this type of situation (other wireless devices, firmware version, configuration, interference, etc), it seems that in your case, the HT mode was key for your wireless devices to communicate properly.
I want to share my discovery with this 7260 mini card. When I upgrade my original Qualcomm card with this one-7260, I lost my automatic connection with some wireless hotspots like Starbucks. I've checked lots of discussions. Nothing helped until I decided to improvise. When replacing the original card in my Asus Zenbook, I found that I have only one internal antenna. The original card was 1x1. This one has the design 2x2, and have to inputs for antennas. On eBay I purchased the internal dual 2.4/5 GHz antenna and installed it in my netbook. Since then my computer is flying in internet. No problem at all.
It was a bit difficult to pick the antenna due to the wide variety but, mostly for 2,4 GHz only. The one I picked game me visible signal boost in 2,4 spectrum and almost nothing in 5 MHz, but both connections are excellent. I was surprised that nobody discovered this yet, even Intel doesn't have recommendation.
There are may factors that may cause connectivity issues, and the different wireless settings in the adapter and router can be modified to avoid most of them.
Remember that HT mode is strictly related to coexistence with WiFi standards previous to 802.11ac. The three possible modes of HT (Disabled, HT or VHT mode) will cause the adapter to have different behavior; but, will also change the way other WiFi devices will react to the WiFi network traffic (routers, other PCs, smartphones, WiFi capable appliances, etc.)
Some possible causes for this condition are a temporary issue in the firmware / driver of a network component, coexistence with another WiFi capable device, etc. Due to the vast array of possibilities, it is always recommended to have your systems up to date (firmware, drivers) and avoid interference or contention from other Wi-Fi network devices. Computer systems do not always behave in a logical way, and in some cases a simple reboot, reconnect or small configuration change is required to resolve a problem.