I followed Microsoft's article and setup Workflow for SharePoint. Double verified with this article http://sharepoint-community.net/profiles/blogs/configuring-sharepoint-2013-to-support-workflow-management.
SP designer on the App server where Workflow is installed still says Platform type 2010. "The option for the SharePoint 2013 workflow platform is not available because workflow service is not configured on the server...."
This is what I have done..
localhost:12291 - Works
SP2013App:12291 - works from both server and outside of the server
Service Application associations is checked with the web application
Central admin /_admin/WorkflowServiceStatus.aspx - Workflow is Connected
PowerShell verification - works
Get-SPWorkFlowConfig -webapplication http://sp2013-test.domain.com
EmailNoPermissionParticipantsEnabled SendDocumentToExternalParticipants DeclarativeWorkflowsEnabled
------------------------------------ ---------------------------------- ---------------------------
True False True`
Ran SP config - successful