The solution above by Jeddf worked for me, many thanks!
This one has been a real bugger to find, I'm glad I'm not the only one with this issue!
I have been having the same issues with multiple Non-Apple USB-C dongles since I received my late 2016 Macbook Pro 15" in late November of 2016. When the dongles stated below were plugged into any of the four USB-C ports on the Macbook Pro with nothing attached to the dongles themselves, Wifi would immediately drop and not come back until unplugged.
Specs of my unit: base CPU, 460 GPU, and 500gb SSD.
My network priority has been set for Wifi having the highest priority over Internet connection methods.
During all of these tests of dongles, Internet over Ethernet was never used or plugged into the computer.
The routers used to test this was a Westell router at 2.4 GHz (failed case) and an Apple Airport Extreme at 5 Ghz (worked case).
USB-C devices used with issues so far in case an engineer at Apple is trying to replicate this issue:
- Aukey's USB-C to 4 USB3 type A and 1 Ethernet (replicated on two different units)
- ASL's USB-C to 1 full sized Display Port (4k @ 60Hz model)
USB-C devices used with no issues: (everything plugged into these dongles were successful)
- Apple's Thunderbolt 3 to Thunderbolt 2
- Aukey's USB-C to 1 USB3 type A
Being an EE my first guess is that this is either a relatively simple software bug (i hope), a signal isolation issue with the port (unlikely), or the issue lies with Texas Instrument chips used in the Apple dongles (i beleive this is the chip Apple is using), which probably aren't used in the 3rd party options yet, as to why Apple's works and others don't (plausible).