I thought that when you have your inventory sorted by timeline the newest item you get appears as the very last item in your inventory? A friend and I are experiencing it where the newest items appear at the very TOP of the inventory. I've never had this happen before. Is this a bug? Have things been changed where the newest items appear at the top now?

I have this happen all the time. I think what happens is that it carries over the timestamp of when your friend got it. So if they've had it in their inventory for longer than you've had items in yours, it ends up closer to the top of the page when they send it to you.

I find it very confusing as everything else you get winds up at the bottom (purchases, quest prizes, etc). I think things should remain consistent (unless there are multples in your inventory)

I'm having that happen to me as well with things being sent to me. The Timeline seems fine with the things that I get by questing and random event things.

Nope, it's not an issue with my inventory currently.