This is the default appearance of Appointments and it is intended by design. However you will be able to remove that line by modifying the AppointmentItem vertical and horizontal ControlTemplates, which are needed for the ViewDefinitions with a different orientation. You will need to move the border named PART_TimeMarker right above the rectangle named ReadOnlyVisual. I'm attaching a sample project which demonstrates the exact approach, I have done also some other arrangements of the elements in the template in order to align them correctly.
Hope this helps.
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