Eureka

Finally i got it working for both Android and Windows laptop.
While from Android I was able to access local network, browse folders and use RDP from my windows laptop I could've only access the network and that's it - I also had adds displayed in browser while I was connected to the VPN server.
What did the trick:
I set up the second server in TAP mode and kept the Server 1 in TUN mode.
Server 1 is being accessed by my mobile phone (Android) as it seems the OpenVpn client does not support TAP mode - everything works perfect.
Server 2 is being accessed by my windows client and now I can browse my local network and make use of RDP as well.
This is my current configuration:
Server 1:
VPN access - LAN only
Interface Type - TUN
Protocol - UDP
Server Port - 1194 default
Authorization mode - TLS
Username/Password Auth - Yes
Username/Pass Auth Only - No
Advertise DNS to clients - Yes
Compression - Disable
Server 2:
VPN access - LAN only
Interface Type - TAP
Protocol - UDP
Server Port - 1195
Authorization mode - TLS
Username/Password Auth - Yes
Username/Pass Auth Only - No
Allocate from DHCP - Yes
Advertise DNS to clients - Yes
Compression - Disable
Hope this will help someone else looking to do the same thing.
Any other suggestions are always welcomed

Thank you all for your time and support.