I’ve noticed this, as well. Been playing a new character through Legion and haven’t been able to use the mushrooms. I disabled all my addons to make sure it wasn’t that and it still doesn’t work. Made a bug report, but I have a feeling that, after this long with no fix or mention of it by Blizzard, it’s just not a priority fix for them.
Same issue on 3 of my druids. 
Tried using both the mobile app and in game, doesn’t work.
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march, still broken
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Still broke AF
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And it’s still broken… 
Continues to remain broken.
Still appears to be broken. Deathknight Horns and paladin librams seem to work but any of the restore vitality items appear not to.
These were apparently disabled at the time of the original post.
Still broken.
Priest item “Healing Well” still does not restore vitality to Legion troops.
Is there an official post about this?