The MRI report does not differentiate between a recurrent disc herniation and granulation tissue. Hopefully, you had an Mri with Gadolinium which can light up scar or cast a shadow if this is recurrent disc hernation (which happens in 10% of patients). It is possible that this is granulation tissue but without gadolinium, this would be conjecture and not science.
If it is a recurrent herniation, a repeat microdiscectomy might be in order. If it is granulation only, time might be more helpful. In either case, an epidural steroid injection can reduce the inflammation and give you a better chance of reduction of pain.
What concerns me is that your pain pattern fits more with a foraminal stenosis or a lateral recess stenosis picture. This could be from collapse of the disc height (common after a hernation) and a mechanical bony compression. A recurrent hernation with lateral recess stenosis is also a common scenario. Look up these conditions on this website and also let me know if you did have gadolinium with your MRI.
Dr. Corenman
Donald Corenman, MD, DC is a highly-regarded spine surgeon, considered an expert in the area of neck and back pain. Trained as both a Medical Doctor and Doctor of Chiropractic, Dr. Corenman earned academic appointments as Clinical Assistant Professor and Assistant Professor of Orthopaedic Surgery at the University of Colorado Health Sciences Center, and his research on spine surgery and rehabilitation has resulted in the publication of multiple peer-reviewed articles and two books.