In mathematics, each trigonometric function only takes pure numbers as arguments, and the argument is geometrically interpreted as radian.1) Even the unit $\text{rad}$ is defined in SI units purely as the number $1$.
So, what is the degree then? You can simply consider the degree symbol ${}^{\circ}$ as the constant having the value
$${}^{\circ}=\frac{\pi}{180},$$
i.e., it is simply a conversion factor. Then
If you regard $\sin$ to take degree as the input, then it is the same as considering $\sin(x^{\circ})$, where ${}^{\circ}$ is the above constant. In this case,
$$ \lim_{h\to 0} \frac{\sin(h^{\circ})}{h} = {}^{\circ} = \frac{\pi}{180}. $$
If you simply replace $h$ by $h$ degree, i.e. $h^{\circ}$, then nothing changes because
$$ \lim_{h\to 0} \frac{\sin(h^{\circ})}{h^{\circ}} = 1. $$
1) This interpretation is valid only when the argument is real. The trigonometric functions can take complex arguments as well, and then the geometric interpretation no longer applies.