I'm not sure what causes this to happen but someone at Technet fixed the problem by deleting the extra adaptors entry from device manager.
"Device Manager > Network Adapters > and there I've deleted everything"
That's the part that works. But first of all on device manager you must press 'view' -> 'show hidden devices'. After that small list of 2 or 3 devices is growing to about ~200devices. Unistall all of them (some can't be, don't bother). Then press right mouse button at any adapter and check 'scan for new devices'. After that it's working perfectly
Source> Windows 7 System Error 1231 Network Location Cannot Be Reached