I can successfully use Charles proxy for my iPhone device through internet sharing via wifi. I also successfully installed a SSL certificate on my device to decrypt secure traffic. When I activate HTTP proxy on my device as directed on the Charles proxy website everything works perfectly.
However whenever I turn HTTP Proxy off on my device, I no longer receive traffic (this is the problem). This happens whether Charles is running or not. It happens after restarting my mobile device and notebook. I've turned sharing internet on and off both with Charles on and off, recording on and off. I've even tried removing the SSL certificate on device. I can't use my internet sharing without Charles actively viewing my traffic (which upsets many of my apps). I was able to accomplish this in the past.