Why does "Bus Timeout Error" appear on the 'Error Condition' column?
The reason for this is explained in section 3.6.2 "Suppress Bus Time-out Error" of the User's Guide. The current implementation of the master task cannot refer to a LIN descriptor file, so there is no way to determine the length of any received message.
To calculate an appropriate time-out value, multiply the length of an eight-byte frame by 140% of the bit rate. This value can be overridden by entering a fixed time-out value in the COM Setup window, described in section 3.5.1 "Setup COM port" of the User's Guide. So basically, one can choose to see or not see it because the tool itself is not capable of processing the frame to decide if it was or was not a Timeout Error.
You can download the User's Guide from the 'Documentation and Software' section of the LIN Serial Analyzer product landing page.