That's not really the issue. All WiFi chipset/radios are transmitters and receivers both (how else would the device send data?). The issue is the WiFi dongle being used is configured as a wireless client, where it needs an access point to connect to. The same WiFi dongle could be configured as an access point to provide wireless network services to other wireless clients, but HE would still need something to connect to, and most device/dongle WIFi chipsets can't be both an access point and a client at the same time.
A side note: One could remove the client->server nature of how most people use WiFi networks and setup each client radio in an "ad-hoc network" mode, where there is no centralized access point - each device can talk to every other device directly. Handheld game consoles regularly use this mode to communicate with other handhelds in the area without requiring a central access point (nintendo Switch for example).
