SSH Port Forwarding -D not working anymore

There is also an option called PermitTunnel. Make sure this is set to yes. If you can't find it, add it.

In your -vvv-log, it says Exit status 127, this is set by bash when it can not find the command. This could mean it's a client problem. I think you are using OSX, right?

Can you connect to another server? Maybe localhost? Has anything changed to your ssh-client installation? Nothing in .ssh/config?