'device not ready' - wifi not working on ubuntu 16.10

Question

Wifi works in windows, so its not a hardware problem.

After installing Ubuntu 16.10 on my Lenovo Thinkpad 510, the wireless is not working. In the network manager it says 'device not ready'

$ iwconfig
lo        no wireless extensions.

enp0s25   no wireless extensions.

wlp3s0    IEEE 802.11  ESSID:off/any  
          Mode:Managed  Access Point: Not-Associated   Tx-Power=0 dBm   
          Retry short limit:7   RTS thr:off   Fragment thr:off
          Power Management:off


$ sudo iwlist wlan0 scan
wlan0     Interface doesn't support scanning.


$ lspci -nn | grep -e 0200 -e 0280
00:19.0 Ethernet controller [0200]: Intel Corporation 82577LM Gigabit Network Connection [8086:10ea] (rev 06)
03:00.0 Network controller [0280]: Intel Corporation Centrino Wireless-N 1000 [Condor Peak] [8086:0084]

I have tried:

$ lspci -knn | grep Net -A2
00:19.0 Ethernet controller [0200]: Intel Corporation 82577LM Gigabit Network Connection [8086:10ea] (rev 06)
    Subsystem: Lenovo 82577LM Gigabit Network Connection [17aa:2153]
    Kernel driver in use: e1000e
    Kernel modules: e1000e
--

SUSPEND_MODULES="rtl8723be" to /etc/pm/config.d/config

sudo service network-manager restart

$ sudo lshw -class network
  *-network                 
       description: Ethernet interface
       product: 82577LM Gigabit Network Connection
       vendor: Intel Corporation
       physical id: 19
       bus info: pci@0000:00:19.0
       logical name: enp0s25
       version: 06
       serial: 00:26:2d:fd:f3:a8
       size: 1Gbit/s
       capacity: 1Gbit/s
       width: 32 bits
       clock: 33MHz
       capabilities: pm msi bus_master cap_list ethernet physical tp 10bt 10bt-fd 100bt 100bt-fd 1000bt-fd autonegotiation
       configuration: autonegotiation=on broadcast=yes driver=e1000e driverversion=3.2.6-k duplex=full firmware=0.12-1 ip=192.168.1.9 latency=0 link=yes multicast=yes port=twisted pair speed=1Gbit/s
       resources: irq:25 memory:f2400000-f241ffff memory:f2425000-f2425fff ioport:1820(size=32)
  *-network DISABLED
       description: Wireless interface
       product: Centrino Wireless-N 1000 [Condor Peak]
       vendor: Intel Corporation
       physical id: 0
       bus info: pci@0000:03:00.0
       logical name: wlp3s0
       version: 00
       serial: 00:26:c7:3d:a3:f6
       width: 64 bits
       clock: 33MHz
       capabilities: pm msi pciexpress bus_master cap_list ethernet physical wireless
       configuration: broadcast=yes driver=iwlwifi driverversion=4.8.0-39-generic firmware=39.31.5.1 build 35138 latency=0 link=no multicast=yes wireless=IEEE 802.11
       resources: irq:29 memory:f2000000-f2001fff


$ sudo rfkill list
0: tpacpi_bluetooth_sw: Bluetooth
    Soft blocked: no
    Hard blocked: no
1: hci0: Bluetooth
    Soft blocked: no
    Hard blocked: no
2: phy0: Wireless LAN
    Soft blocked: no
    Hard blocked: no

Output from dmesg | grep iwl is on http://pastebin.com/S2c9C3E4

Running sudo modprobe -r iwlwifi && sleep 20 && sudo modprobe iwlwifi produces no output.

$ echo "options rtl8723be fwlps=N" | sudo tee /etc/modprobe.d/rtl8723be.conf

outputs options rtl8723be fwlps=N

Have also tried sudo service network-manager restart but this also did not help.

$ cat /etc/modprobe.d/iwlwifi.conf
# /etc/modprobe.d/iwlwifi.conf
# iwlwifi will dyamically load either iwldvm or iwlmvm depending on the
# microcode file installed on the system.  When removing iwlwifi, first
# remove the iwl?vm module and then iwlwifi.
remove iwlwifi \
(/sbin/lsmod | grep -o -e ^iwlmvm -e ^iwldvm -e ^iwlwifi | xargs /sbin/rmmod) \
&& /sbin/modprobe -r mac80211

Also tried https://askubuntu.com/a/770714/17643 but this also did not work.

Also tried sudo apt-get install --reinstall linux-firmware but this also did not help.

Also, based on https://ubuntuforums.org/showthread.php?t=2188827&p=12855191#post12855191, /etc/rc.local - Im not sure if this is supposed to be empty.