Spotter and Observation cartridges are two totally different things. 7,9 mm B-patrone = Beobactungs-patrone = Observation cartridge. Intended to be fired by a unit leader to direct fire as the white phosphorus incendiary mix gave a bright flash and a large cloud of smoke for the other troops to see and concentrate their fire on. These were also used by the Luftwaffe for air to air combat, mixed with AP, AP-Tracer and AP-Incendiary.
Although there were official ratios many Luftwaffe pilots had their own preferred mix and their ground crews loaded up the belts "custom" per the pilot's instructions.
B-patrone was also authorized for snipers to be used on the East front only. The Soviets were considered sub-human so the Germans did not care if they used B-patrone in the anti-personnel role. The Soviets reportedly were doing the same to them with their copy of B-patrone in 7.62x54r.
I read one account of a German sniper that used a captured Mosin-nagant sniper rifle and the red tipped explosive incendiary rounds usually found in machine gun belts... A head shot with an explosive round was very demoralizing to the troops in the near vicinity...
Spotter cartridges are reduced velocity, trajectory matched to a larger rocket or projectile and not generally a regulation size rifle cartridge. They are often just a tracer or a tracer with an incendiary like charge designed to give a flash and puff of smoke to designate the location of a hit.
It was the Yugoslavians that remanufactured the B-patrone after the war. I saw where a guy got a full, sealed crate of this by mistake with his order of regular 7,9 mm ball ammunition!
1DD