The Move Recycle recovers used Hold Items like intended. However, on the turn where Recycle is used, right after the usage, the Hold Item is supposed to activate, if the Item's conditions are met. (For example, Recycle'ing a Sitrus Berry at less than 50% HP is supposed to activate the Sitrus Berry again once the move is used, but it doesn't)

Instead, the berry activates at the end of the turn.

https://gyazo.com/3832c6d97149699accc985a3252b864f Gif of me using Recycle and the Berry not getting used until after the opponent uses their move.

Thank you for the report! I've been able to recreate the recycle bug.

Hi there! I'm currently going through older tickets, and I can confirm that this issue is still present in version 8.3.6.

My method:
1) (using pkmn from another bug test) I had a Drampa holding an Oran Berry, with Mean Look and Recycle as his only moves.
2) My NPC trainer opponent had a Darmanitan holding a lagging tail (to make him move slower) with Aurora Beam.
3) Upon reaching half HP, my Drampa ate his berry and regained some health, but not enough to go over the halfway point. On the next turn, I used Recycle, and the berry was given back to Drampa, but the berry was not eaten again until after the enemy Darmanitan used another Aurora Beam on that same turn, exactly as in the gif shown above.

As such, I'll go ahead and send this issue on to internal. Thanks!