I installed Magento 1.9.4 via softaculous it loaded perfectly fine then in order to upload external theme files and sample data I used FileZilla to upload the file.
In order to make the theme work properly one has to delete the default sample data and upload the sample data and sql file provided with the theme, then run the installation via web interface.
But, when I am reaching toward the Database Connection part, i am getting error again and again despite putting everything correctly I tried adding a user to my DB with all privileges but failed to do so.
To upload the SQL file you need to go to your MySQL databases section, then on phpMyAdmin you can import the SQL file on the database and continue the installation.
Uploading sql is not the issue. I dropped the tables in default DB then uploaded gzip sql but after this its not allowing me to set user with privilege or use the last user that was set initially while installing default magento via softaculous.
The first thing to note is that you cannot add users or databases through SQL commands on any kind of web hosting service. The permissions to create users and edit users are normally limited to the root user of MySQL. If you have your own database server, you can use the root user to do whatever you want. But on a shared system, it would allow anyone to access and modify the databases and contents of any account on the server, which we obviously cannot let you do.
Instead, you should setup database for your software through the MySQL Databases section in the control panel, and then use the provided database username and password to connect to that database.