Can you post a picture of the base path and REST data protocol filter rules from the service's Listen Step?
Also, you say recording but the description sounds more like a playback issue.
Perhaps, the service is mixing two different concepts (i.e., basepath and URI Rules).
I would expect to see something like:
- VSM Listen Step, base path = /Dir/Application
- VSM Listen Step, Filter (Virtual Service Environment, Data Protocol, REST Protocol) having an URI rule such as:
GET /Dir/Application/{app_id} or GET /Dir/Application/{URLPARAM0}
The VSI would also have the "app_id" or "URLPARAM0" appear as an argument.