I've been trying different things and have found that when I disable the Bluetooth wireless drivers in device manager, I get a stable and steady connection on the 2.4 GHz band, but that defeats the whole purpose of having a Bluetooth enabled card. I am no expert, but looks like there is some sort of interference between the Bluetooth and the 2.4 GHz band. I am still getting a strong 300Mbps connection when connected to the 5.2GHz band only. Guess Intel should have called this a single instead of a dual band card, and the band not working is the most popular!
OK, now found out that I have a slow but stable connection with Bluetooth enabled, but as soon as I connect any Bluetooth device the connection becomes unstable and begins the dropping again. Again...this is only on the 2.4 GHz band....5.2 GHz is still strong 300 Mbps.