So I took the advice of TarquinTheDark and customized my punting special teams. My man, Landon Morris, went nuts and blocked a lot punts. However, two blocks ended up going to Seattle on the next possession.

First case, if Landon Morris (receiving team) blocks the punt, recovers the ball, fumbles it and recovered by the kicking team, the call was first down Seattle (kicking team).
No, that can't be right.

Second case, Fourth and 1. Landon Morris (receiving team) blocks punt and the ball is recovered by the kicking team a few yards forward of the line of scrimmage. Kicking team first down?

https://mfn27.myfootballnow.com/watch/7461#1313951
4-7-SEA 28 (11:16) Punt BLOCKED by 53-Landon Morris! recovered by ARZ-53-Landon Morris at SEA 15. 53-Landon Morris FUMBLES (78-Darrin Becker) recovered by SEA-51-Stanley Richey at SEA 14. Tackle by 56-Bruce Stevens.
Offensive Play: Punt
Defensive Play: Punt Return
1st down Receiving team ( Seattle)

https://mfn27.myfootballnow.com/watch/7461#1314004
4-1-ARZ 50 (9:13) Punt BLOCKED by 53-Landon Morris! recovered by SEA-47-Edward Brown to ARZ 44 for 1 yards. Tackle by 98-Jason Tamayo.
Offensive Play: Punt
Defensive Play: Punt Return
1st down Seattle

I wouldn't mind if every blocked punt resulted in the blocking player fumbling the ball back.

I might be wrong but in a quick flash research I believe the other team lacked a punter. In that case and against AI I really don't have an issue with blocked punts.

I’m ok with the blocked punts. I am questioning if the punting team recovers a blocked punt Getting get a first down

Both plays involve a fumble. The punt/block is a change of possession, so the return team's fumble gives the punt team a new set of downs.

The "fumble" on the second one looks like an AI bug, though.

I kind of wonder about the intellect of someone who gets off on blocking a non-punter 14 times, but I agree. No holds barred against the AI.

There is no bug. Both scenarios are completely correct as is.

In the first case you took position of the ball and then fumbled it back to the other team who is now starting a new drive because of the change of possession from you to them.

In the second case, the blocked punt is treated as a fumble and can be recovered and advanced by either team. Seattle recovered the ball gaining enough distance to earn the first down and keep the existing drive alive.

It's best to understand the rules of football before posting in the bug forum.