Its been reported before. It can work and it can fail. Seems to depend on how scratch disk are configured.
If I remove C: as a scratch disk no Autoecover PSB file are saved in my AutoRecover Folder. So I would guess other configurations will also fail.
Well, even my scratchdisk is set on the L drive, the autorecover file is created.My problem is , when PS crashes and I restart it, the recover file does not open automatically.What I need to do is go to the autorecover folder and click the recover file.When I do not do that and first start PS without clicking this file, the file gets deleted from the folder.So to sum it up, photoshop crashes, I go to the recover folder and click the file in there , I can recover the file.But if PS crashes and I just restart PS , no recover file gets loaded automatically ( as it did in PS 2015) and when I go to the recover folder after I restart PS 2017, the file is gone.
Make sure there is a bug report on Adobe feedback site. If you can not find one there please submitt one.
Your luck there are recover file created at least. When I removed C: as a scratch disk no recovery files were save on my system. Adobe has bugs in the Autorecovery feature.