This is reported by agawronska@google.com in an email thread.

Steps to repro:
After setting network, hosts does an update, but returns connectivity UNTESTED. It is clearly connected, because the check for update is successful.

1) Connect
2) GetHostStatus
 parameters {
           connectivity: CONNECTIVITY_UNTESTED
           enrollment_status: ENROLLMENT_STATUS_UNKNOWN
          update_status: UPDATE_STATUS_UNKNOWN
          }
3) ConfigureHost
  parameters {
        accepted_eula: true
        keyboard_layout: "_comp_ime_jkghodnilhceideoidjikpgommlajknkxkb:us::eng"
        lang: "en-US"
        send_reports: false
        timezone: "PST"
        }
4) ConfigureConnectivity
   {"Type":"WiFi","WiFi":{"SSID":"GoogleGuest","Passphrase":"","Security":"None"}}
5) GetHostStatus
 parameters {
          connectivity: CONNECTIVITY_UNTESTED
          enrollment_status: ENROLLMENT_STATUS_UNKNOWN
          update_status: UPDATE_STATUS_UPDATING
         }
6) GetHostStatus
 parameters {
         connectivity: CONNECTIVITY_UNTESTED
         enrollment_status: ENROLLMENT_STATUS_UNKNOWN
         update_status: UPDATE_STATUS_UPDATED
         }