Trellis cli issue to access Lima ctl VM database with Sequel Ace

I have trellis/trellis.cli.local.yml as I thought I need to set things for local url. In the file I have:

# Trellis CLI example config file
# https://roots.io/trellis/docs/cli/#configuration
#
database_app: sequel-ace
open:
  admin: "https://site.test/wp/wp-admin"

I use Limactl to run my Virtual Machine:

limactl list | grep Running
site.com    Running    127.0.0.1:64651    4       4GiB      100GiB    ~/.lima/site.com

and trellis vm shell works and so does ssh user@127.0.0.1 -p 64651

When I run trellis db open development I get

trellis db open development      
[✓] Open site.com (development) database with sequel-ace

But Sequel Ace then shows me this error::

Used command:  /usr/bin/ssh -v -N -S none -o ControlMaster=no -o ExitOnForwardFailure=yes -o ConnectTimeout=10 
-o NumberOfPasswordPrompts=3 -o UserKnownHostsFile=
"/Users/user/Library/Containers/com.sequel-ace.sequel-ace/Data/.keys/ssh_known_hosts_strict" 
-F /Applications/Sequel Ace.app/Contents/Resources/ssh_config -o TCPKeepAlive=no -o ServerAliveInterval=60 
-o ServerAliveCountMax=1 -p 64651 user@127.0.0.1 -L 58336:localhost:3306

OpenSSH_9.8p1, LibreSSL 3.3.6
debug1: Reading configuration data /Applications/Sequel Ace.app/Contents/Resources/ssh_config

What am I missing?

Removed the trellis/trellis.cli.local.yml so using default cli config file with

# Trellis CLI example config file
# https://roots.io/trellis/docs/cli/#configuration
#
# database_app: sequel-ace
# open:
#   admin: "https://mysite.com/wp/wp-admin"

When I ran

trellis db open --app sequel-ace development site.com

Sequel Ace opens again and fails as before. It seems all variables are populated except for the ssh private key which did not get added. So it fails to connect. Then added the private ssh key in the UI manually and tested connection and all is well. Not sure yet why.