If the M95 Mauser was so weak, why did Kimber stick a bunch of them chambered to the .308 Win. in Ramline stocks and sell them as low budget sporters?

Because Kimber had them pressure tested to see if they were safe. They were.
The original guns were IIRC, in 7x57 and were rebarreled to the 7.62 CETME cartridge which has the exact same dimensions as the 7.62 NATO/.308Win. The CETME assault rifle had problems with full power NATO rounds so was loaded to a lower pressure level. The 95 Mausers were made as back up guns to the CETME. Spain got the pressure problems fixed in the rifle and threw the 95's on the market. Kimber bought them up tested them and cut the barrels to sporter length and put them in Ramline stocks for a very reasonable price.
The 93 Mauser has no extra locking lug and poor handling of escaping gas. The M52 uses the bolt handle as sort of an extra lug but still handles escaping gas poorly.
I have never used an M95 Mauser chambered to anything but did have a beautiful little sporter in 7x57 based on the M93 Mauser. It was built in some small British shop at some time and resembled the famed .275 Rigby of Karamojo Bell fame. To this day I'm sorry I ever sold it. It had the standard long throat for 175 gr. bullets but shot 140 gr. Sierras into nice tight groups. Back them (1973/4) I did keep loads to factory levels due to their reputation of being weak. While these days I'm not so sure, I don't think I'd push the limits in one today. I load for three rifles in 7x57 and the more I shoot the round, the better I like it. All my rifles have the long throat for 175 gr. bullets and they do shoot that weight the best but one rifle will day in and day out put 140 gr. Nosler Ballistic tips into .75" when I do my part. Another will put three 175 gr. Hornady round nose bullets into a half inch.
I would think that if the bore in your rifle is in good shape,the long throat may not make an awful lot of difference with most bullets. Any decent 150 gr. bullet should shoot just fine.
One thing is for sure. Put the gun into decent lightweight stock, have a gunsmith cut and crown the barrel to around 22 to 24" (I like 23"), put a scope friendly bolt handle and drill and tap for a scope and scope the gun and I'm thinking you'll have a sweet lightweight Mountain Rifle.
Granted, factory ammo is not loaded to the rounds full potention, nor do I recommend loading that hot. However, the Winchester 145 gr. Powerpoint factory load has been extremely accurate in all three of my rifles, the worst still holding at one inch.
The 7x57 has killed well ever since 1892, even in it's downloaded state.
Stay away from Federal 175 gr. ammo. It does not come anywhere near advertised velocities. I chronographed the load at 2010 FPS. Gun writer John Barsness also commented that when he clocked some of that ammo, he too only got 2010, give or take a few FPS. back i 1973, that was the only ammo I could find and sad to say it cost me a very nice Mule Deer. I don't believe the bullet as going fast enough to open up.
If your going to reload for the cartridge, my choices run to Winchester first when you can find it (Darned seasonal basis baloney) then Remington. I don't much care fore Federal brass as it is usually softer then the first two and primer pockets loosen up quickly.
Case in point; I was given 1,100 rounds of once fired Federal Gold Medal Match .308 Win. brass. Ammo was fired in police sniper rifles. One of my LEO buddies snagged it for me. 8) I picked 20 at randon, tumbled them, resized and primed the cases. Every one had a somewhat loose primer pocket. Let's just say it was looser than I'm comfortable with. I'll save them for my cast bullet shooting.
Paul B.