The vault was raided in 2154 by the Unity, and its inhabitants were taken prisoner and subsequently turned into super mutants.
Lily Bowen and her grandchildren, Becky and Jimmy are the only known inhabitants of Vault 17. They lived in the vault until Lily was 75 years old, at which time she was captured by the Master's Army and turned into a nightkin.
↑ 1.01.1The Courier: "Where did you come from?" Lily Bowen: "I grew up in Vault 17. I never even saw the sun until I was 75 years old - that was when Super mutants raided the Vault and carried a lot of us off. Yes, Leo, I'm getting to that part!They made me one of them, and they put me to work in an army that was going to conquer California." (Lily Bowen's dialogue)