Probably you were disabling the main menu's Wi-Fi connection on the drop down options instead of disabling the "Use wireless networks" under Settings-Location Services.
Bear in mind that Wi-Fi != Use Wireless Networks.
When you use
locationManager.isProviderEnabled(LocationManager.NETWORK_PROVIDER)
it is cheking the "User Wireless Networks" option.
I had the same problem, many alike questions were posted at StackOverflow and only one answer had this information. Took me a whole afternoon. Hope you got it! :)