your config/database.php is wrong
env('app') means get the variable 'app' from the env. if you have a variable by this name on the .env file it will be fetched here,
env('DATABASE', 'app') means get the variable called 'DATABASE' from .env if not found use the value 'app'
fix your config file and the .env and check again.
That's the solution. Thank you very much, astroanu! Looks like while trying different things I actually damaged the database.php
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