[Android Software Development] stankyou:
Okay. I went back to CM10.2 and tried the steps below and seemed to work.

I rebooted my phone and lost the existing wifi connection to establish tethering.

I launched the Tethering tool.

Tethering tool connected fine but can't browse.

I toggled my data switch on and off (I didn't even wait for it to connect to the network)

Tethering tool established a connection

Profit!

Attached the log just in case you can find something helpful.

09-17 16:51:08:781 W/I Tool version : 3.11

09-17 16:51:08:781 W/I adb.exe

09-17 16:51:08:781 W/I aapt.exe

09-17 16:51:08:922 W/I Android Debug Bridge version 1.0.31

09-18 04:51:11.23 A/I process (539) : Start proc service.tracetool for broadcast service.tracetool/.TTBroadcastReceiver: pid=6745 uid=10093 gids={50093, 3003, 1028}

09-18 04:51:11.35 A/I UsbThread1 : usbServerSocket : Waiting for the host to connect

09-17 16:51:12:437 W/I Wait java service

09-17 16:51:12:547 W/I waiting android server connection ... 1

09-17 16:51:13:094 W/I Waiting for connection

09-17 16:51:14:078 L/D HOST : cyanogenmod

09-17 16:51:14:078 L/D RELEASE : 4.3

09-17 16:51:14:078 L/D SDK : 18

09-17 16:51:14:078 L/D FINGERPRINT : google/occam/mako:4.3/JWR66V/737497:user/release-keys

09-17 16:51:15:875 W/I interfaces before script startrmnet_usb3(DOWN), rmnet_usb2(DOWN), rmnet_usb1(DOWN), rmnet_usb0(DOWN), p2p0(UP), sit0(DOWN), lo(UP) 127.0.0.1/8, wlan0(UP), dummy0(DOWN), rev_rmnet1(DOWN), rev_rmnet0(DOWN), rev_rmnet8(DOWN), rev_rmnet4(DOWN), rev_rmnet3(DOWN), rev_rmnet2(DOWN), rev_rmnet7(DOWN), rev_rmnet6(DOWN), rev_rmnet5(DOWN), rmnet4(DOWN), rmnet3(DOWN), rmnet2(DOWN), rmnet7(DOWN), rmnet6(DOWN), rmnet5(DOWN), rmnet1(DOWN), rmnet0(DOWN), rmnet_smux0(DOWN)

09-17 16:51:16:172 W/I no route

09-17 16:51:16:187 L/D OnStart script 3.11

09-17 16:51:16:187 L/D Interface to use : "sit0"

09-17 16:51:16:594 L/D ifconfig sit0 192.168.1.2 netmask 255.255.255.0

09-17 16:51:16:859 L/D route add default gateway 192.168.1.2 sit0

09-17 16:51:17:484 L/D redirect all communications to TETHER chain

09-17 16:51:17:641 L/D forward tcp to native handler

09-17 16:51:18:422 L/D OnStart script done

09-18 04:51:17.49 A/V Chain PREROUTING (policy ACCEPT 0 packets, 0 bytes)

09-18 04:51:17.50 A/V pkts bytes target prot opt in out source destination

09-18 04:51:17.50 A/V 0 0 oem_nat_pre all -- any any anywhere anywhere

09-18 04:51:17.50 A/V Chain INPUT (policy ACCEPT 0 packets, 0 bytes)

09-18 04:51:17.50 A/V pkts bytes target prot opt in out source destination

09-18 04:51:17.50 A/V Chain OUTPUT (policy ACCEPT 0 packets, 0 bytes)

09-18 04:51:17.50 A/V pkts bytes target prot opt in out source destination

09-18 04:51:17.50 A/V 0 0 TETHER all -- any any anywhere anywhere

09-18 04:51:17.50 A/V Chain POSTROUTING (policy ACCEPT 0 packets, 0 bytes)

09-18 04:51:17.50 A/V pkts bytes target prot opt in out source destination

09-18 04:51:17.50 A/V 2 120 natctrl_nat_POSTROUTING all -- any any anywhere anywhere

09-18 04:51:17.50 A/V Chain TETHER (1 references)

09-18 04:51:17.50 A/V pkts bytes target prot opt in out source destination

09-18 04:51:17.50 A/V 0 0 REDIRECT tcp -- any sit0 anywhere anywhere tcp dpts:tcpmux:41999 redir ports 42200

09-18 04:51:17.50 A/V 0 0 REDIRECT tcp -- any sit0 anywhere anywhere tcp dpts:42500:65535 redir ports 42200

09-18 04:51:17.50 A/V 0 0 REDIRECT udp -- any sit0 anywhere anywhere udp dpt:domain redir ports 42001

09-18 04:51:17.50 A/V Chain natctrl_nat_POSTROUTING (1 references)

09-18 04:51:17.50 A/V pkts bytes target prot opt in out source destination

09-18 04:51:17.50 A/V Chain oem_nat_pre (1 references)

09-18 04:51:17.50 A/V pkts bytes target prot opt in out source destination

09-18 04:51:18.47 A/I =====HcActivateFakeWifi==========

09-17 16:51:19:844 W/I interfaces after script startrmnet_usb3(DOWN), rmnet_usb2(DOWN), rmnet_usb1(DOWN), rmnet_usb0(DOWN), p2p0(UP), sit0(UP) 192.168.1.2/24, lo(UP) 127.0.0.1/8, wlan0(UP), dummy0(DOWN), rev_rmnet1(DOWN), rev_rmnet0(DOWN), rev_rmnet8(DOWN), rev_rmnet4(DOWN), rev_rmnet3(DOWN), rev_rmnet2(DOWN), rev_rmnet7(DOWN), rev_rmnet6(DOWN), rev_rmnet5(DOWN), rmnet4(DOWN), rmnet3(DOWN), rmnet2(DOWN), rmnet7(DOWN), rmnet6(DOWN), rmnet5(DOWN), rmnet1(DOWN), rmnet0(DOWN), rmnet_smux0(DOWN)

09-17 16:51:20:141 W/I route : destination : 0.0.0.0, gateway : 192.168.1.2, output : sit0

09-17 16:51:20:141 W/I route : destination : 192.168.1.0, gateway : 0.0.0.0, output : sit0

09-17 16:51:20:141 W/I

09-17 16:51:20:141 W/I Connection done

09-18 04:51:45.51 A/I handleLoadPackage : Saved process name changed from com.google.process.gapps to com.google.android.gsf

09-18 04:51:45.91 A/I handleLoadPackage : Saved process name changed from android.process.acore to com.android.providers.contacts

09-18 04:51:45.94 A/I handleLoadPackage : Saved process name changed from android.process.acore to com.android.providers.contacts

09-18 04:51:48.02 A/I handleLoadPackage : Saved process name changed from com.google.android.gsf.login to com.google.android.gsf.login

09-17 16:52:10:201 W/E 55476 : native Tcp connection error to 98.136.223.39:8996 :Socket Error # 10060

Connection timed out.

09-18 04:52:09.30 A/E 15 : nativeTcpClientConnectionError from windows : 55476 : Socket Error # 10060

09-18 04:52:09.30 A/E Connection timed out.

09-17 16:52:12:107 W/E 49319 : native Tcp connection error to 184.73.176.108:5242 :Socket Error # 10060

Connection timed out.

09-18 04:52:11.21 A/E 29 : nativeTcpClientConnectionError from windows : 49319 : Socket Error # 10060

09-18 04:52:11.21 A/E Connection timed out.

09-18 04:53:36.39 A/I handleLoadPackage : Saved process name changed from com.joelapenna.foursquared to com.joelapenna.foursquared

Server List

domain (53) : A->H : 21000 ,H->A : 5105

https (443) : A->H : 158497 ,H->A : 2435041

Google Play (5228) : A->H : 743 ,H->A : 503

http (80) : A->H : 5806 ,H->A : 2959353

8996 : A->H : 0 ,H->A : 0

5242 : A->H : 0 ,H->A : 0

DNS List

10.218.99.10

10.218.100.52

8.8.8.8