So, I have 2 dongles with the same chip as yours, here is the dmesg output for each:
Each one is able to connect without problem, I didn't test the stability.
Maybe your dongle is defective :/ , If you are looking to get a new one, avoid theses models, they have a bad reputation.
Search for a RTL8192CU, the problem is that they share the same "case" as MT7601
Quote:[ 28.702112] usb 1-1: New USB device found, idVendor=148f, idProduct=7601
[ 28.702128] usb 1-1: New USB device strings: Mfr=1, Product=2, SerialNumber=3
[ 28.702133] usb 1-1: Product: 802.11 n WLAN
[ 28.702137] usb 1-1: Manufacturer: MediaTek
[ 28.702141] usb 1-1: SerialNumber: 1.0
[ 29.031559] usb 1-1: reset high-speed USB device number 2 using dwc_otg
[ 29.274116] mt7601u 1-1:1.0: ASIC revision: 76010001 MAC revision: 76010500
[ 29.282387] mt7601u 1-1:1.0: Firmware Version: 0.1.00 Build: 7640 Build time: 201302052146____
[ 29.738612] mt7601u 1-1:1.0: Warning: unsupported EEPROM version 0d
[ 29.738629] mt7601u 1-1:1.0: EEPROM ver:0d fae:00
[ 30.009852] ieee80211 phy0: Selected rate control algorithm 'minstrel_ht'
[ 30.011288] usbcore: registered new interface driver mt7601u
[ 30.263301] IPv6: ADDRCONF(NETDEV_UP): wlan0: link is not ready
[ 31.863618] wlan0: authenticate with XXX
[ 31.924899] wlan0: send auth to XXX (try 1/3)
[ 31.926625] wlan0: authenticated
[ 31.931966] wlan0: associate with XXX (try 1/3)
[ 31.935616] wlan0: RX AssocResp from XXX (capab=0x411 status=0 aid=4)
[ 31.973846] wlan0: associated
[ 33.026678] IPv6: ADDRCONF(NETDEV_CHANGE): wlan0: link becomes ready
Quote:[ 15.951644] usb 1-1: new high-speed USB device number 2 using dwc_otg
[ 16.202174] usb 1-1: New USB device found, idVendor=148f, idProduct=7601
[ 16.202190] usb 1-1: New USB device strings: Mfr=1, Product=2, SerialNumber=3
[ 16.202196] usb 1-1: Product: 802.11 n WLAN
[ 16.202200] usb 1-1: Manufacturer: MediaTek
[ 16.202205] usb 1-1: SerialNumber: 1.0
[ 16.531570] usb 1-1: reset high-speed USB device number 2 using dwc_otg
[ 16.773864] mt7601u 1-1:1.0: ASIC revision: 76010001 MAC revision: 76010500
[ 16.781246] mt7601u 1-1:1.0: Firmware Version: 0.1.00 Build: 7640 Build time: 201302052146____
[ 17.279907] mt7601u 1-1:1.0: EEPROM ver:0c fae:00
[ 17.546069] ieee80211 phy0: Selected rate control algorithm 'minstrel_ht'
[ 17.547610] usbcore: registered new interface driver mt7601u
[ 17.813354] IPv6: ADDRCONF(NETDEV_UP): wlan0: link is not ready
[ 19.424186] wlan0: authenticate with XXX
[ 19.485028] wlan0: send auth to XXX (try 1/3)
[ 19.486762] wlan0: authenticated
[ 19.491577] wlan0: associate with XXX (try 1/3)
[ 19.495225] wlan0: RX AssocResp from XXX (capab=0x411 status=0 aid=4)
[ 19.527474] wlan0: associated
[ 20.581020] IPv6: ADDRCONF(NETDEV_CHANGE): wlan0: link becomes ready
Each one is able to connect without problem, I didn't test the stability.
Maybe your dongle is defective :/ , If you are looking to get a new one, avoid theses models, they have a bad reputation.
Search for a RTL8192CU, the problem is that they share the same "case" as MT7601