Kenny Jackett's side were beaten at Peterborough United last time out and they slipped up again as prolific striker Patrick Bamford and defender Ben Reeves gave Karl Robinson's team a superb away win.
MK Dons are 12th in the table and nine points outside the play-off places, while Wolves are in second place and a point behind leaders Leyton Orient.
Orient were denied a win at Bradford City as Nahki Wells scored his 14th league goal of the season in the 92 minute to secure a 1-1 draw at Valley Parade.
Lloyd James had put the London club in front, but Russell Slade's side were unable to hold on and have now drawn their last three League One games
Brentford were the big benefactors as Jonathan Douglas scored the only goal of the game late on against Oldham Athletic to give Mark Warburton a win in his first game in charge.
Warburton was named as Uwe Rosler's successor this week and his side are now just four points behind Orient in third place.
Fourth-placed Preston North End surrendered a two-goal lead to draw 2-2 at Crawley Town, as Gary Alexander scored in stoppage time to complete the fightback in John Gregory's first match at the helm of the Sussex club.
Peterborough United needed a goal from Britt Assombalonga, who also opened the scoring, seven minutes into time added on to draw 2-2 at Gillingham.
Darren Ferguson's side are fifth and just two points better off than Rotherham United, who were 2-1 winners at bottom-of-the-table Bristol City.
Notts County made it back-to-back wins by hammering Colchester United 4-0 away from home, while fellow strugglers Crewe Alexandra drew 2-2 against Coventry City at Northampton.
Fourth-bottom Stevenage were held by the same scoreline at Port Vale, who needed a late Tom Pope goal to salvage a point.
Sheffield United continued their resurgance under Nigel Clough, with Jose Baxter scoring the only goal of the game against Swindon Town at Bramall Lane.
Carlisle United hammered struggiling Tranmere Rovers 4-1, while Walsall were 1-0 winners at Shrewsbury Town.
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