When your ping command shows replies coming from the same IP that initiated the request (192.168.1.7 in your case), this indicates a fundamental network layer issue. The system can't even reach the router to attempt forwarding the packet to 192.168.1.2.

Your arp -a output reveals the smoking gun:

Interface: 192.168.1.7 --- 0xd
  Internet Address      Physical Address      Type
  192.168.1.1           00-1f-33-ef-28-01     dynamic
  [...]

Notice the absence of 192.168.1.2 in the ARP table. The system doesn't know how to reach the target machine at layer 2.

Before digging deeper, let's verify basic Ethernet connectivity:

:: PowerShell alternative to traditional ping
Test-NetConnection 192.168.1.2 -TraceRoute -InformationLevel Detailed

Your route print shows correct local subnet routing:

192.168.1.0    255.255.255.0         On-link       192.168.1.7    276

But something is preventing layer 2 communication. Let's check neighbor discovery:

arp -d *  :: Clear ARP cache
arp -a    :: Verify empty cache
ping 192.168.1.2 -t :: In separate window
:: In admin PowerShell:
while($true) { arp -a | findstr "192.168.1.2"; Start-Sleep -Seconds 1 }

Many modern routers have client isolation features. Verify these aren't enabled:

:: Query router settings via SNMP (if supported)
snmpwalk -v2c -c public 192.168.1.1 .1.3.6.1.4.1.12356.101.12.1.6.0

Run this Wireshark filter on both machines:

(arp || icmp) && (ip.addr == 192.168.1.2 || ip.addr == 192.168.1.7)

Check these Windows registry settings:

reg query HKLM\\SYSTEM\\CurrentControlSet\\Services\\Tcpip\\Parameters /v ArpRetryCount
reg query HKLM\\SYSTEM\\CurrentControlSet\\Services\\Tcpip\\Parameters /v ArpUseEtherSNAP

:: PowerShell comprehensive test
$result = Test-NetConnection -ComputerName 192.168.1.2 -InformationLevel Detailed
$result | Format-List *
:: Linux-style tools for Windows
tcping.exe 192.168.1.2 80

:: Reset entire TCP/IP stack
netsh int ip reset c:\\resetlog.txt
netsh winsock reset
:: Then reboot both machines and router

---

When your ping command shows replies coming from your own IP address (192.168.1.7) with "Destination host unreachable" messages, this indicates your system cannot find a valid path to the target machine (192.168.1.2). Here's what's happening at the packet level:

Packet Flow Analysis:
1. Your machine (192.168.1.7) sends ICMP Echo Request
2. Network stack checks routing table 
3. Finds no valid path (despite being same subnet)
4. Generates ICMP Destination Unreachable from itself

Your route print shows the expected local network route:

192.168.1.0    255.255.255.0         On-link       192.168.1.7    276

But the key indicators we need to check:

• Both NICs show "Media disconnected" (wired interfaces)
• Only wireless adapter (00-25-86-DF-C6-89) is active
• ARP table shows no entry for 192.168.1.2

The arp -a output reveals the fundamental issue:

Missing ARP Entry:
No mapping exists for 192.168.1.2 in your ARP cache
Only router (192.168.1.1) appears in dynamic entries

Try manually adding the ARP entry (if you know the MAC):

arp -s 192.168.1.2 00-1a-2b-3c-4d-5e

Many consumer routers have a "Client Isolation" or "AP Isolation" feature that prevents wireless clients from communicating directly. Check your router for:

• Wireless -> Advanced Settings -> Client Isolation
• Wireless -> AP Isolation
• Advanced -> Station Isolation

Example diagnostic commands:

:: Verify basic connectivity
ping 192.168.1.1 -t

:: Check if MAC is discoverable
arp -d *
ping 192.168.1.2
arp -a

If isolation isn't the issue, try these advanced troubleshooting steps:

:: Reset TCP/IP stack
netsh int ip reset reset.log

:: Reinstall wireless driver
pnputil -e
:: Find your wireless device ID then
pnputil -d oemNN.inf
pnputil -i -a oemNN.inf

When ping fails, try these diagnostic alternatives:

:: Test raw TCP connectivity
Test-NetConnection 192.168.1.2 -Port 445

:: Check firewall rules
netsh advfirewall firewall show rule name=all

:: Test with different protocol
tnc 192.168.1.2 -ICMP -TraceRoute

Remember that Windows Firewall might still block traffic despite being "off" - verify with:

netsh firewall show state