Installing repository returns "SQLSTATE[08006] [7] fe_sendauth: no password supplied"

So, I have this site up and running on Digital Ocean servers since April. Nothing has changed, and I've not been bothered with it. Except, a couple of days back someone reported that site inaccessible.

I checked, my site was returning ERR_CONNECTION_REFUSED. I also noticed some SSL certificates (LetsEncrypt) related errors and thought I'd be better off just provisioning a new server, etc.

To my surprise, what used to be as easy and clicking a few buttons, no longer is. I have created and new server and added my unchanged repository to it. Forge returns error after checkout of said BitBucket repository:

Generating autoload files
> php artisan clear-compiled
  [PDOException]                                         
  SQLSTATE[08006] [7] fe_sendauth: no password supplied  
Script php artisan clear-compiled handling the post-install-cmd event returned with error code 1

Also, the repository is uninstalled automatically after the error, so I can no longer ssh and poke around to find the cause of error. I could swear I was able to do this before.

I'm using the correct DB credentials in the .env file before I add a repository. I have also verified that I can use the same credentials to log into the same database using pdAdmin III.

Forge, also seems to have undergone some changes. For instance, I could swear I would previously be able to ssh into my machine to determine the cause of error. I also noticed that the checkbox for Run Migrations after installation" is missing. Also, I'd used to modify the post build step to add a step for running db:seed. I no longer see a way to do that.

Any help is appreciated.