Just downloaded the latest version of Raspbian. I got wifi working much easier this time. it was as simple as generating a key and putting this into the /etc/wpa_supplicant/wpa_supplicant.conf file.

Generate the wpa_supplicant config file updates:

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pi@pi-2 ~ $ wpa_passphrase  SSID 12345678
network={
        ssid="SSID"
        #psk="12345678"
        psk=34b59e6b0182725d4246030ce85bf8010c4dd29082a0403761d22db29497528e
}

/etc/wpa_supplicant/wpa_supplicant.conf file:

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update_config=1

network={
        ssid="YOUR_SSID"
        #psk="YOUR PSK"
        psk=GENERATED
}

That’s it.. a reboot I was able to ping and ssh after that.