Interestingly it appears that now the driver (vers 2.1) does something
with error, and before it ignored it.

a solution (in desktop cases) is to do following to release resource..
then hostapd has no error....

sudo nmcli nm wifi off
sudo rfkill unblock wlan


this info has been gleaned from 
https://bbs.archlinux.org/viewtopic.php?pid=1221799

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Packages, which is subscribed to wpa in Ubuntu.
https://bugs.launchpad.net/bugs/1289047

Title:
  [Trusty] hostapd package is broken

Status in “wpa” package in Ubuntu:
  Confirmed

Bug description:
  When trying to create an access point, I am met with a fatal error
  with hostapd:

  nl80211: Could not configure driver mode
  nl80211 driver initialization failed.
  hostapd_free_hapd_data: Interface wlan0 wasn't started

  What worked before no longer works today after a package upgrade.

  After installing hostapd deb from Ubuntu 13.10, it works.

  ProblemType: Bug
  DistroRelease: Ubuntu 14.04
  Package: hostapd 1:2.1-0ubuntu1
  Uname: Linux 3.14.0-031400rc5-lowlatency x86_64
  ApportVersion: 2.13.2-0ubuntu5
  Architecture: amd64
  Date: Thu Mar  6 16:57:20 2014
  InstallationDate: Installed on 2014-02-01 (33 days ago)
  InstallationMedia: Kubuntu 14.04 LTS "Trusty Tahr" - Alpha amd64 (20140121.1)
  ProcEnviron:
   TERM=xterm
   PATH=(custom, no user)
   LANG=en_CA.UTF-8
   LANGUAGE=en_CA:en
   SHELL=/bin/bash
  SourcePackage: wpa
  UpgradeStatus: No upgrade log present (probably fresh install)

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