Hi,
I updated the bp-config.php file so that BBDB_NAME etc has the same details as in wp-config.php file and it seems to solve the issue.
My bp-config file resides at /public_html/wp-content/plugins/buddypress/bp-forums/bbpress/bp-config.php and not at the root of WordPress installation but it still seems to be working fine after I updated the bp-config.php file.
Note that, I had to uncheck and check back the “Enable Forum” option under the Group Admin settings to make the error message goes away from the existing groups. However, if I created a new group, I don’t have to do this and it will allow me to post in that Group Forum.