" Would the regen show on the dashboard? "
You won't get any indication when the engine is doing a regen other than the cooling fan will run, & you probably won't be able to hear that unless you open the window while stationary.
I have a 2008 Passat similar to yours with the 2l CR engine & have never seen anything like 27mpg on the computer other than the first minute of running from cold.
I live on a 40mph limit road & by the time I have covered a mile the computer will be showing about 35mpg, after a further mile it will be on about 45mpg, but I live in a fairly quiet area with little congestion.
Earlier in the week I had to travel to central Manchester in the rush hour. A journey of 40 miles but it took 2 hours, so lots of congestion, a mixture of country A roads, motorway & town. The computer was showing 52mpg at the end of the journey & has proved to be fairly acurate when checked with brim to brim calculations.
The return journay, late morning & little congestion returned 58mpg. On the same journey in warm weather I have seen as much as 68mpg, but that was exceptional.
When you turn on the ignition does the glow plug light & DPF light illuminate for a second or two bfore you start the engine?
The DPF light will only illuminate while driving if the DPF starts to get over about 25% full. The glow plug light will start to flash at a higher % when the DPF is getting towards a critical capacity.
I would certainly get this sorted ASAP before the DPF sustains any damage.
Also check you engine oil level, it could be rising above the high mark if it's getting contaminated with unburnt diesel. If it gets too high that could also damage your engine.
If you join VWAUDIFORUM, there may be someone close to you who has the diagnostiv software & can interrogate the various controllers & find your problem for a few beer tokens.
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