Theme just didn't render forums as expected.
Also tried this suggested solution http://www.kriesi.at/support/topic/bbpress-gone but it still didn't work.
Yes, Propulsion is incompatible with bbpress 2.2.x because the plugin devs changed the template structure. You can delete the forum template in the Propulsion folder (called forum.php) and bbpress 2.2.3 should work fine afterwards.
Thanks, your instructions worked.
Now using wp3.5+propulsion1.7+bbpress2.2.3
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