Also confirming for Surface Pro 1:
WiFi would report successful association, and then immediately drop the 
connection giving "reason code 2" and "CMD_RESP: cmd 0x10f error, result=0x2" 
as the only hints.

Disabling MAC randomization fixed the issue.

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https://bugs.launchpad.net/bugs/1681513

Title:
  Ubuntu 17.04/17.10: New feature in NetworkManager stops several WiFi
  adapters from working (MAC Address Randomization issue)

Status in network-manager package in Ubuntu:
  Confirmed

Bug description:
  According to 
  
https://blogs.gnome.org/thaller/2016/08/26/mac-address-spoofing-in-networkmanager-1-4-0/
  there is a new privacy feature in the new version of NetworkManager.
  This privacy feature can cause some USB WiFi adapters to stop working
  while they used to work with older versions of NetworkManager (Ubuntu 16.10 
or older).

  The purpose of this privacy feature is to get your computer to report a new 
random MAC address whenever you connect to a WiFi network.
  This privacy feature is especially useful when you connect to public WiFi 
networks, so that the operators cannot identify you when you connect multiple 
times.

  The downside of this privacy feature is that some USB WiFi adapters misbehave 
when NetworkManager tries to change their MAC address repeatedly. 
  The result is that those USB WiFi adapters cannot connect anymore to the WiFi 
 network.

  Original report follows:

  My Panda USB wi-fi adapter works just fine on 16.10, but when I try to
  connect to my wi-fi router in 17.04, GNOME network manager reports
  "Connection failed." I did some tinkering, and noticed that my MAC
  address for my wifi adapter, according to GNOME, is DIFFERENT every
  time I make it forget my wifi settings and try to reconnect. Weird,
  right? Any leads on a possible fix or work-around?

  I'm running the latest beta of Ubuntu GNOME 17.04, kernel
  4.10.0-19-generic, GNOME 3.24.0.

  https://blogs.gnome.org/thaller/2016/08/26/mac-address-spoofing-in-
  networkmanager-1-4-0/

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