In short, no, reviews in the “not currently recommended” section for a business do not factor into the overall star rating of that business. Only the star ratings of recommended reviews are used to calculate the business's overall rating. Please note that the recommendation software is entirely automated. It applies the same objective rules to every business and treats reviews of advertisers and non-advertisers exactly the same.
Here’s a quick video with more details on how our recommendation software works:
We hope to continually improve the recommendation software, and appreciate any feedback you may have.