Answer: Turned out to be a cisco bug with Cisco C881W-A-CVO-K9 routers and all current IOS(couldn't find a working IOS). I opened a case with Cisco TAC and they created a bug and published a working IOS image for me.
Bug ID: CSCul56697 https://tools.cisco.com/bugsearch/bug/CSCul56697
If you need the working image it is called "c800-universalk9-mz.SSA.V153_3_M1-CSCul56697" and you will need to open a TAC case to get it. Hopefully they will release a fixed mainline version soon.