Can I return my leased 2013 vw Passat without penalty due to recall?

Ultimately, your lease has the answer to this question. Please review your lease for your remedy. This is a unique situation though, because if it not covered in your lease, then, you should be able to negotiate the return of the vehicle with no mileage fees because they are in breach by not allowing you to purchase the vehicle. Good luck. READ YOUR LEASE!

Not inherently no. There may be some remedies to consider but your best bet is to hire a consumer lawyer to sort this out.

The lease will govern return of the vehicle, mileage overage, and recalls. Not clear why are recall would prohibit you from purchasing. Usually, you bring in the vehicle and they repair whatever is the basis of the recall. If recall or defect is preventing you from using (doesn't sound like it) that may be a basis for getting out of lthe ease, but sounds like you are already over in miles. You should be able to purchase. You will need to meet with a local consumer rights attorney and have them review the lease and the recall notice.