Hi Jason.
i think you'll find that when you select recirc mode, the compressor
for the aircon will not run. It's a safety thing to prevent the system
freezing or something. You certainly won't get good dehimidification
with recirc mode selected, you need fresh air.

Change the pollen filter (if fitted), as this will bring your airflow
back up to standard.
The other thing which I find useful is to switch the AC off completely
a few minuted before you get home, as doing this melts any ice on your
evaporator, letting it drain out of the vehicle, then there's less
moisture sitting inside the heater/cooler ready to stick to the
windscreen as the car cools down overnight. Makes your screen drier in
the morning.

I have had similar problems recently, but I need to check my gas
level. I think mine needs a recharge as it was very poor in the
summer.

Hope to help.
Joe.
P.S Keep the V70 classic going. The build quality is better than that
of the 2000- model ten fold. I miss my old 1997 girl!!