I came across a sentence in a product description:
We recommend it is configured according to the Standard.
I would have written the sentence as
We recommend configuring it according to the Standard.
Which version is right/better/wrong? Why?
Your version is definitely better.
The first is definitely oddly worded and possibly grammatically incorrect. You recommend something. Following "We recommend" with a statement about something's condition is odd, if not completely wrong.
I would either say it the way you said it or
We recommend that it be configured according to the Standard
They're both correct, and both are saying the same thing. However, the first is slightly more formal, so the choice of which is more appropriate depends on the register (tone) of the rest of the text. In a product description, the former seems to be the better choice.