At the moment, the timeline block only supports two types of coloring: specific color (which lets you pick a specific color) and color by select field (which requires that you pick a single select field). Based on the names of your field types, it looks like you don’t have any single select fields, which is why all the options are grayed out.
Crucially, neither of the available options in the timeline block is related to or dependent on the record coloring feature, so at the moment, your conditional record coloring can’t carry over to your timeline block.
The matrix block, in contrast, does support coloring from view (which would allow you take the conditional coloring and apply it to the block). There might be future changes to the timeline block which would allow you to do this as well, but for the time being, you’ll need to come up with an alternate solution. I’ll move this thread to the feature request category and I’ll let you know if we implement this feature later.