My case is a little different then the search results I had, so a new topic.
As soon as I change my permalinks for bbPress, I get 404 errors for bbPress (even for bb-admin) so I lost control of everything and i had to manually delete the .htaccess file
Now when I switch to the 2nd permalink option then the forum loads up, admin panel is accessible too but any topic page or forum page gives a 404. And now when I switch back to none settings of the permalink everything works fine.
I delete the WP .htaccess too but it looks like that its permalink are working without any .htaccess file
I am a little lost here to what could be the problem.
Also when I delete the .htaccess file, the admin panel keeps redirecting me to the front page until I log out and login again from bbPress side.
I am stuck with the default permalinks option now.