Cannot change root access in MySQL to %
SHOW GRANTS only gives you back whatever you are connected as, which was root@localhost.
root@localhost and root@'%' and completely different users. Just do
SHOW GRANTS FOR root@localhost;
SHOW GRANTS FOR root@'%';


root@localhost lets you connect from the DB Server via mysql.sock (the socket file)
root@'%' lets you connect via TCP/IP, but you must explicitly connect with that protocol. Otherwise, mysqld connects you as root@localhost. This is true even if you attempted to connect using 127.0.0.1.

SUGGESTION #1
For the sake of security, you should use netblocks instead of '%'. For example, if you web servers at 10.1.2.20, 10.1.2.30, and 10.1.2.40, you should create
GRANT ALL PRIVILEGES ON *.* TO 'root'@'10.1.2.%'
IDENTIFIED BY PASSWORD '*fdfgdgdggfggfgfg' WITH GRANT OPTION;

instead of having a remote root.
SUGGESTION #2
If you really want the remote root, here is what you do
UPDATE mysql.user SET host='%'
WHERE user='root' AND host='localhost';
FLUSH PRIVILEGES;

That will do what you want, but remote root is not recommended.
SUGGESTION #3
Since root@'%' already exists, then remove the root@localhost.
DELETE FROM mysql.user WHERE user='root' AND host='localhost';
FLUSH PRIVILEGES;

This will leave root@'%' as the only root user, but you must connect explicitly with TCP/IP.