At the risk of sounding critical, and without being in full knowledge of the facts, it sounds like the boxer should have been socialised more thoroughly or just better - with other dogs. 7-11 months is the typical age for socialisation issues to rear their heads. Unsuspecting owners with puppies assume that everything is going to be fine because their little puppies aren't showing any aggression or temperament problems - however, it is just latent through this period - then their puppies reach adolescence and suddenly all these socialisation issues rear their heads. Even though I thoroughly socialise mine, I never heave a sigh of relief or let up on the socialisation until the first year is over.
Your friend now has the choice of either managing this behaviour or solving it. To solve it, she will need to see her vet for a check up (which would be a good idea anyway, just to rule things out) and then ask the vet for a referral to an APBC behaviourist:
http://www.apbc.org.uk/members.phpNot letting another dog near her owners is called resource guarding. The resource that she is guarding being her owners. Again, this is a separate issue and will need working on with a behaviourist.
There are no quick fixes - it will be a long process to help her.
To manage this behaviour, and until it can be solved with a behaviourist, you are right - she will have to be muzzled and on a long line, at all times. She will get adequate exercise on a long line. If your friend doesn't like it, tough - her owners have failed to train an adequate recall and they have an aggressive dog, and these two things mean she needs to be on a long line and muzzled. Either one of these things would mean the same - both together just mean it doubly so!