Microsoft has published a fix for Windows 7 Network connections are stuck in Public mode
SYMPTOMSWindows 7 Network connections are stuck in Public mode
You may be unable to change or set your network connection location when attempting to connect to a network using a Windows 7-based computer. The location associated to the network connection may not be a clickable link.
CAUSE
This issue can occur if you have at inadvertently selected the checkbox beside the option to Treat all future networks that I connect to as public, and don’t ask me again. Once this option is set, you may be unable to change this setting.
RESOLUTION
To have us fix this problem for you, go to the "Fix it for me" section. If you prefer to fix this problem yourself, go to the "Let me fix it myself" section.