I work with Photoshop all the time. This makes it particularly annoying when, for weeks on end, it kept auto-recovering an old PSB file I was working on, no matter how many times I closed (or saved) it.
The solution is actually quite simple and obvious:
Simply right click on the PSB file and select Reveal in Finder:
Now take that file (or if there’s more than one, all of them) and delete them. It should be fixed. Let me know if this worked for you!