A degree or two of confusion here.
Mark VIIz is simply a Mark VII round loaded with nitro-cellulose propellant instead of cordite (the "z" suffix indicates NC on all British ammunition). Introduced in 1917 using American DuPont No.16, Mark VIIz was made intermitently right through the life of the .303, the last being made by ROF Radway Green in 1973.
Mark VIIIz was introduced for Vickers guns in 1938 to give better ballistics for long range barrage fire. It has a 175 grain boat-tailed bullet and is loaded to slightly higher velocity (2,550 fps nstead of 2,450) and pressure (20-21 tons instead of 19.5) than the Mark VII. Due to the different erosion properties the two should not be mixed in machine guns, but it is not a concern in rifles. It also has a more pointed profile than Mark VII. The official line was that Mark VIIIz could be used in rifles in an emergency or when a lower flash was desirable, e.g. night patrols. There is no problem with pressure because both rifles and machine guns were proofed to the same pressure of 25 tons.
I am not sure which manual antiquesguy is quoting, but Pamphlet 11, Small Arms Ammunition, (my editions dated 24 Feb. 1945 and 1 April 1949) states:
"(c) Light Machine Guns*
Mk.8z being Neonite loaded gives a small flash at night. When the Bren gun is being used for some special purpose at night, e.g. on a patrol, it may be desirable to make use of Mk.8z in order to lessen the flash.
(d) Rifles*
Mk.8z S.A.A. will not be used in rifles except as in the case of Bren guns (see (c) above), if the necessity should arise.
*Although the use of Mk.7 and kindred types of cordite loaded, flat base, bulleted ammunition reduces Mk.8z barrel life, the reverse is not the case. No deletrious effect will therefore be produced by the occasional and restricted use of Mk.8z ammunition in these weapons for the purposes indicated above."
Some snipers may have preferred it, but it was not regular issue for snipers.
Regards
TonyE