Arcane Recovery states that spell slots may be recovered after a SHORT rest. This text is repeated in the DnD Beyond description on a War Mage character sheet. Yet, the DnD Beyond implementation requires a LONG rest be completed. I can't believe I'm the first to notice this. Am I missing something?

It also says “once per day,” that’s what the thing tracks, which resets on a LONG rest.

Perhaps. What are you expecting to happen when you take a short rest? 

On a long rest, it should restore all your spell slots, not the limited subset of AR. Because AR requires you to choose which slots to recover, I'm pretty sure the process when you use it is to uncheck the boxes yourself.

The Long rest seems to work properly. When our group does get a Short rest, I have to lie to the character sheet and say it was a Long rest, This causes other things to happen, which should not occur. Hit Points are regained, hit dice are reset, etc.

Quote from Ylai >>

The Long rest seems to work properly. When our group does get a Short rest, I have to lie to the character sheet and say it was a Long rest, This causes other things to happen, which should not occur. Hit Points are regained, hit dice are reset, etc.

 I reiterate: what are you expecting to happen when you hit "short rest" that is not happening?

Edit to clarify: Arcane recovery restores a few of your spell slots. It is optional to use, and you have ti pick and uncheck the slots yourself.

Long rest restores all your spell slots.

It doesn’t restore all your spell slots, it doesn’t happen automatically, and it only works on 1 short rest per day, not every short rest. You have to manually uncheck the spell slots whenever you use this feature.