This was an issue in NM, fixed in 0.9.1.90-0ubuntu6: we'll default to IPv6: 
Ignore if creating an ad-hoc network:
https://bugs.launchpad.net/ubuntu/+source/network-manager/+bug/830178

Closing as Fix Released for n-m and Invalid for dnsmasq.

** Changed in: network-manager (Ubuntu)
       Status: Triaged => Fix Released

** Changed in: dnsmasq (Ubuntu)
       Status: New => Invalid

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https://bugs.launchpad.net/bugs/857294

Title:
  Creating hotspot leads to endless connect/disconnect loop

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