Look around and get different answers.
The usual legend is that after WWI, the Versailles Treaty strictly limited the number of 8x57s that could be held in Germany, military and commercial both. So the 8x60 was devised for hunting rifles. The case was longer but bullets would have to be seated deeper to give an OAL suitable for a regular '98. I guess you could squeeze it into a Yugo that way, but if you did, it would offer no advantage over the standard 8x57.
There are four variants, the 8x60 (or 8x60J) for use in .318" barrels, the 8x60M (or 8x60S) for use in .323" barrels, the 8x60R (rimmed) for drillings, and the 8x60 Magnum Bombe for great big game hunting.
Phil Sharpe has a different version, that it was a later development and that the OAL of the standard round would not fit the magazine of a Mod '98 but would SOME military actions and of course sporters would be made to suit.
It sounds like a lot of trouble to me.
8x57 at Euro specs will do anything that the 8x60M or S will; and you would be on your own loading up Magnum Bombes.