[SOLUTION]
Guys, i was having this exact same problem after updating to 7.1.1. I restored and then it forced me to update to 7.1.2, but the problem still persisted.
I tried many times to restore via iTunes, or restore network settings/restore all settings via Settings.
The problem was solved for 10 minutes, the wifi could connect.
But just for 10 minutes and then it started searching until no networks were found.
Sometimes when I restored the wifi became "greyed out".
Ok. Solution.
- I bought my iPhone in 2011 in US. So its warranty is definitely expired.
- I went to the Apple Store in Sydney (I live here now) and they scheduled me a Genius Bar Appointment
- Waited for about an hour and then they took me to see the technician
- Explained my problem to him:
"I was running 7.0.6 and it was just fine, but as soon as I updated to 7.1.1 the wifi issues started to appear, I tried restoring but I was then forced to update to 7.1.2 in which the problem still persisted."
- Make sure you show him the wifi toggle GREYED OUT
- I reckon it is easier for him to accept that it is not your fault if you show that the wifi toggle is greyed out.
- In the beginning he gave an option to make a DFU Restore (which they say only apple could do) or Swap my phone (which I would have to pay the costs of AUD 229)
So I am trying to tell you guys what I did to make them change my phone. so good luck