Can you bore the 500 cylinders to fit 59.8mm pistons? Yes.
Should you? Probably not. The cylinder material gets pretty thin in this situation. I'd worry about uneven cylinder heating and distortion, which is more stable/consistent with a thicker cylinder wall.
Looking at it another way, Honda offered pistons in 4 over bore sizes. The biggest overbore was 1mm over stock. I speculate that Honda considered the thinning cylinder wall and limited the wall loss by limiting the overbore size. (Or, they reasoned that the lower end would be beyond wear limits after 4 top overhauls.)
With this understanding, the biggest safe overbore with the CB500 liners would be 57mm.
The biggest safe (Honda extrapolated standard) overbore with the CB550 liners would be 59.5. Technically the 650 pistons of 59.8, are slightly beyond Honda expectations. However, 61mm pistons have been used successfully in Cb550 cylinders. So, in theory, we could apply that same 2.5mm overbore to the CB500 as well, making the largest overbore for the CB500 at 58.5mm. Using Cb650 standard size pistons of 59.8mm in Cb500 cylinders, puts you firmly in the experimentation category. And, if you ever score a cylinder wall, another over bore isn't very attractive. On the other hand, 59.8mm pistons fitted into Cb550 cylinders is still under the 61mm size that has been known to "work".
So, how much risk are you willing to take?
Cheers,