Thank you @1112stord. This is the problem:
2017-05-23T18:36:23+0000 <log> index.js:114 (Socket.<anonymous>) Bringing wlan0 up....
/etc/network/if-pre-up.d/wpasupplicant: 120: /etc/network/if-pre-up.d/wpasupplicant: cannot create /dev/stderr: No such device or address
run-parts: /etc/network/if-pre-up.d/wpasupplicant exited with return code 1
I have seen this issue once before on a Raspberry Pi that had visible physical damage to the wifi chip on the board. We will get you a replacement.