Cannot rebuild database or add any custom fields

[JoshCB]

It is not about COLLATION, it is database (field) type. How did you "review" the SQL-file (from dump)? With an editor (text editor like notepad++)? If not, do that and search for the term "BIT".
BIT is a database field type like BOOL, VARCHAR, INT or TINYINT etc.. Nothing with COLLATION. If you found the term Bit, look, in which table that is.
I guess you have one field ore more, that got the type BIT and this will not be recognized.

If you found the field with that type, go to PHPMyAdmin, look for that field (in the table), choose the tab "Structure", where you can change the type.

I would not say, that this is aguaranteed solution, because I do not know your SQL file, but it would be th place and way to search for it.

DUDE YOU ARE A LIFE SAVER!!!!!! Finally pointed in the right direction and was able to fix it. The big question is how in the world would the column types be changed to BIT in the first place....but thats a different troubleshooting day. Thankfully this is working again.