ios 9.2 with OSX El Capitan breaks personal hotspot

I've tried several solutions: resetting network settings, signing in and out of icloud on both devices, restarting both devices, deleting the bluetooth plist files and restarting again. Nothing works. When I try to connect on wifi, it just says invalid password (it is definitely the right password). When I try bluetooth, it says "incompatible". Please fix hotspot!