Vivek,
It is not running the hotspot service, this is on a our internal local network running on multiple VLANS for each guest SSID. I do not believe its a configuration issue as this config is being used for 12 other R700 AP's through out or company. this issue is isolated to just 2 AP's that are producing this Unauthorized status.
I have also wiped these AP's and reloaded the config.