I have tried your method but on the top of slower connection (network speed is identified as 54Mbps, which equals G type) the same drop out occurs 
So far I'm extremely disappointed with Intel AC experience.
System: Windows 8.1, 64-bit
WiFi: Intel® Dual Band Wireless-AC 7260
Drivers: All possible including Microsoft 16.0.0.61 and Intel 16.6.0.8 (current) and 16.5.3.0