I have set the block Feed (Outline) as inactive and added the block Feed (Timeline) now in Developer --> Pages --> Homepage. It now shows mine and my friends posts. This is how I want it to be because I will create a separate page and link for Public Outline if users wish to go there. 

I figured out how to make the Feed Timeline look just like the Public Outline in terms of layout. Original code is 

array (
  'module' => 'bx_timeline',
  'method' => 'get_block_view_account',
)

I added _outline to the end of method:

array (
  'module' => 'bx_timeline',
  'method' => 'get_block_view_account_outline',
)