This is not a solution, but it may be of some use. Your conjecture about a recurrence for the $a_n$ is correct.
Let $\alpha=1+\sqrt2$ and $\beta=1-\sqrt2$. Let $\gamma=\alpha^2=3+2\sqrt2$ and $\delta=\beta^2=3-2\sqrt2$. The recurrence can then be written
$$a_n=\frac\alpha4\gamma^n+\frac\beta4\delta^n+\frac12\;.$$
Let
$$b_n=a_n-\frac12=\frac\alpha4\gamma^n+\frac\beta4\delta^n\;;$$
$\gamma+\delta=6$ and $\gamma\delta=1$, so $\gamma$ and $\delta$ are the roots of the quadratic
$$0=(x-\gamma)(x-\delta)=x^2-(\gamma+\delta)x+\gamma\delta=x^2-6x+1\;,$$
so by the general theory of linear homogeneous recurrences we know that the $b_n$ satisfy the recurrence
$$b_n=6b_{n-1}-b_{n-2}\;.$$
This can be rewritten
$$a_n-\frac12=6\left(a_{n-1}-\frac12\right)-\left(a_{n-2}-\frac12\right)\;,$$
or
$$a_n=6a_{n-1}-a_{n-2}-2\;.$$
From the original definition we see that
$$a_0=\frac14(\alpha+\beta)+\frac12=1$$
and
$$a_1=\frac14\left(\alpha^3+\beta^3\right)+\frac12=4\;.$$
The sequence therefore begins $1,4,21,120,697,\dots\;$, and it turns out to be OEIS A182435. That entry in OEIS isn’t very helpful, but this sequence is also OEIS A046090 with the index offset by $1$; neither entry seems to mention the fact that they’re essentially the same sequence, but the second formula give for A046090 confirms it.
The header for A046090 reads as follows:
Consider all Pythagorean triples $(X,X+1,Z)$ ordered by increasing $Z$; sequence gives $X+1$ values.
This may be of help in showing that $a_n$ is not a square for $n\ge 2$; I’ve not had time to look at it very hard.