Re: Buddypress 1.2.6
Re #1 – BP 1.2.7 will fix this.
If you can’t wait until then, try the solution posted in this thread:
https://buddypress.org/community/groups/how-to-and-troubleshooting/forum/topic/am-i-going-mad-or-are-there-now-avatars-next-to-posts-in-the-activity-stream/?topic_page=2&num=15#post-76621
Re #2 – Most likely a child theme issue. Can you post a screenshot to confirm?