The Timeline view currently does not provide the "Show business hours" option as in the other views.
Please add that for the Timeline view similar to the jQuery version of the component.
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ADMIN EDIT
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For the time being, you can achieve this functionality with a custom approach by programmatically setting the StartTime and EndTime of the view to equal the WorkDayStart and WorkDayEnd.
Here is a basic example: https://blazorrepl.telerik.com/QyEhvjbO07j1ZvID42.