I can confirm that there is a bug in the Kendo UI Scheduler functionality that was introduced with the 2017 R3 release of the suite. Basically, when startTime is set or showBusinessHours is set to true, the recurring events are not visible. The item is logged in the public Kendo UI GitHub repository and you can track it from issue #3685
There is currently no viable workaround that I can suggest you to try without this affecting the normal behavior of the widget. However, I am happy to inform you that the bug has been fixed by our development team and is scheduled to be available with the 2018 R1 release.
Alternatively, you can download the latest internal build of Kendo from your Telerik Profile
(under Downloads -> Kendo UI -> Internal Builds tab), where the fix should also be available to test it out before the release.