Power = 1/2 *L* I^2 gives the instantaneous energy stored in an inductor as the current ramps up to the set value. You are incorrectly assuming that this energy is discharged into the chip when the transistor turns off. The current only drops slightly during the PWM off time. It shows up as ripple on the waveform. The heat energy dissipated in the chip continues to be I^2 *R, even during a step cycle when the current changed direction.
It cannot be recycled. The current needs to flow through the mosfets or diodes. The loss can be reduced by using lower resistance fets.For all the above, I think that energy dissipated as extra heat can be recycled and stop damaging the ICs. What do you think?