Try to reproduce as follows:

1) Connect to Wifi network and enter WRONG password the first time
2) Connection failed, enter a new password and save it.
3) Connection fails?
3) Check in the edit connection dialog which password is stored. Is it the one 
entered in 1) or the new one entered?

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https://bugs.launchpad.net/bugs/1263356

Title:
  Asks for authentication repeatedly, never establishes connection

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