I got the exact problem. I added my account (logged into the server) to the managed user list per this link https://stackoverflow.com/questions/30023884/cannot-join-workflow-farm-add-wfhost . The issue was resolved, then I used ps scripts I saved from earlier step to add host to wf farm.
# Get SB Client Configuration
$SBClientConfiguration = Get-SBClientConfiguration -Namespaces 'WorkflowDefaultNamespace' -Verbose;
# Add WF Host
$WFRunAsPassword = ConvertTo-SecureString -AsPlainText -Force -String 'workflow acct pwd' -Verbose;
$WFCertAutoGenerationKey = ConvertTo-SecureString -AsPlainText -Force -String 'cert gen key - passphrase' -Verbose;
Add-WFHost -WFFarmDBConnectionString 'Data Source=****;Initial Catalog=******;Integrated Security=True;Encrypt=False' -RunAsPassword $WFRunAsPassword -EnableFirewallRules $true -SBClientConfiguration $SBClientConfiguration -EnableHttpPort -CertificateAutoGenerationKey $WFCertAutoGenerationKey -Verbose;