First I connect via the ssh tunnel to mysql db on remote server
Then I try to connect to local mysql db through 3306 socket
Leeds to Error 1045 "Access denied for user dbuser@remote-server"

other way round works:
first connect local through 3306
then connect remote through ssh tunnel

What is the local port value you are providing for SSH Tunneling?

Make sure that no process is listening on that port in your local machine.

I do not have a SSH Tunnel to my local system on remote server it is default port 22

I would like to attach a picture for infrastructure, but fails for jpg, gif, png

furthermore:
when I am connected with sqlyog to the remote server,
fabforce dbdesigner fails to connect to the local mysql server as well

Please mail me the screenshot of your connection details to ritesh@webyog.com