I had a similar issue on my Bora; the air was stuck on recirc no matter what. I found that the flap had snapped off the motor, so the sensor on the motor still thought it was opening and closing.
I found it by pulling the air filter out and you could watch the flap; while doing a VCDS output test on the flap, it made the noise but no movement.
I did not fix it in the end, it was too hard to pull the whole airbox to fix it, but I did manage to force the flap open for some fresh air
Edit, or are you saying the light\button won't switch off recirc mode?
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