PokéBase - Pokémon Q&A
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Yes, they do. 5% chance to regenerate every 256 steps.

From that 5%:

  • 40% Item
  • 40% Hidden item
  • 20% Pokemon

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The contents of the Hidden Grottoes are random, and if they are empty, for each 256 steps, they have a 5% chance to regenerate, usually with different content than what was inside on the previous visit. Hidden Grottoes will not regenerate unless the items are obtained or the Pokémon are captured or defeated.

Yes. They can regenerate.

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