I'm facing this issue too, it started about 1-2 weeks ago and it also happens with Diablo 2 (1.14d) and Warcraft 3.
For me it's a Windows 7 issue, maybe related to (old) Blizzard games, but not only to the WoW 1.12.1 client.
edit: Seems to be related to the Microsoft GameUX engine, which has problems with legacy games. There are different fixes that can work, either disabling the GameUX engine fully, unregistering its DLLs (gameux.dll both 32 and 64bit) or modifing the DLL that holds the supported legacy games (GameUXLegacyGDFs.dll) or replacing it with an empty one.
edit2: SOLUTION (disable GameUX, might interfere with other games)
create a text file with the content:
Windows Registry Editor Version 5.00
[HKEY_CLASSES_ROOT\Local Settings\Software\Microsoft\Windows\GameUX\ServiceLocation]
"Games"="127.0.0.1"
save it, rename it from .txt to .reg and execute it. no reboot required, WoW will now load like it should.
to enable GameUX again, use this code:
Windows Registry Editor Version 5.00
[HKEY_CLASSES_ROOT\Local Settings\Software\Microsoft\Windows\GameUX\ServiceLocation]
"Games"="https://games.metaservices.microsoft.com/games/SGamesWebService.asmx"