IOS 8.1.2 breaks Wifi and Bluetooth on iPhone 4s

Since I upgraded my iPhone 4s to IOS 8.1.2, i am unable to use wifi or bluetooth.
My wifi button is greyed out and I cannot turn it on.
Bluetooth will just display a spinning wheel when i turn it on.
I have tried resetting network settings twice, multiple re-boots/re-sets. Toggling Airplane mode. Turning off iCloud. All to no avail.
Just to be clear, this is not an intermittent issue or a slowdown or anything like that.
IOS 8.1.2 has completely disabled wifi and bluetooth.
Anyone else having these problems or got a resolution?

Yes, but first time in the several years to have a problem. Using Outlook on Mac with MS Exchange Server. I have Exchange set up on both iPhone and iPad. Talked to IT and they are making sure MS Exchange Server is fully updated tonight.

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