I don't have much experience with air recovery myself. Sorry if my info is a bit off.
According to the documentation:

Hit Stun Deterioration: The higher the hits in a combo, the harder it is to connect new hits. Currently, hit stun deterioration works
similar to the Guilty Gear series. Soon more options will be added. A more detailed explanation can be found here.

Cant Move: After the hit stun runs out (air recovery), the character can't move, but will land standing.

So i would imagine if you tweak some Hit Stun Deterioration settings you may get the result you need.

I'm gonna mess around with air recovery and see if i can help out.

After a bit of experimenting I came up with these results. Air recovery is triggering after the hitstun goes away.

Not sure if this is a bug or not but when the air recovery gets played after knockback animation it doesn't seem to work. (this is with the default robot kyle stuff so this may need to be tested more)

If you want to see if your air recovery even works try this: Use an override in a move file.