I had the same problem. But something fixed the problem after I created a 2nd fighter (female). After the 1st match Recovery went to a full 100% and offered a new match. Then I created another player (male this time) and now running smoothly.
Same thing going on here On my pS4 just bought it today , attempted creating different fighter , restarting console, deleting and logging back into psn account nothing works. One of the biggest reasons I bought this game was for this game mode