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If you've:-
Tried the official adapter on all of your USB ports
Tried to change the wireless settings in the network area of the dashboard but they are greyed out
Got the Network Adapter Disconnected message and the LED is red
Then the adapter is faulty.
Your not alone I've seen lots of threads on this lately, I believe there maybe a batch of faulty adapters, some people have had to replace it 2 or 3 times before they get a good one.
My advice would be to return it and get them to test the replacement before you leave the store
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