I got this wrong in an exam question at the end of last year/beginning of this.
The way I understand it now (having got the exam question wrong)...
Yes - the continuity of Downs is broken (5-1-4-b), however 3-1-3-e states that Team A may not have a first and 10 if it again possesses the ball after a change of team possession. (Emphasis mine).
The continuity of the series of downs has changed, but team possession has not changed during the down, in AR 3-1-3-IX, Team A end the down in Legal Possession, so they can continue on with their possession series with a new 1st & 10 from where they recovered the ball from.
Had B17 fumbled the ball (having recovered or caught the kick) instead of muffed, then Team A's possession series would be over.