Hello MTS Community,

As stated in the title, are there any mods out there that can increase the max town population? Because I've created a small world and everytime I have newborns, they die.

Is there also a mod to eliminate random townies? Does it include into the town's max limit?

There is no town size limit
What happening in your game is story progression is killing them off because there is no chance that the game believe that they are useful to you, they are single, have no possible partners and or no place for them to live, so the game is working out ways to kill them, to fix that you need a custom story progression. The mod is called Story Progression and is by a really popular modder called Twallan found here

Is that why it affects the new born babies? And which option in one of Twallan's mods is the one to fix it to custom story progression?

StoryProgression. At the light orange-coloured left panel at the left.