Same issue here. If I hide open AP and enable the management AP whilst connected over USB everything is fine.
If I power cycle the nano then I cannot connect (incorrect password). Resetting or updating the management AP password or changing MAC address of wlan0-1 sometimes fixes it. I can also fix it by setting the configuration to default. In all cases it's necessary to 'forget' the previous connection.
I have factory reset the nano and set up via Linux and Mac with no difference. Problem persisted with latest firmware (1.1.3) upgrade.
Did anyone work out what is happening?