I had the same thing happen to me in a game (I may still have that game running, but the villager a long ago passed away.)

But IIRC, she would embrace but wouldn't have a baby until there was enough housing for the increased population.
_________________________
Red Sox--2007 World Champions!
Celtics--2008 NBA Champions!

Isola is a magic island! All sorts of strange things can happen, and often do happen. -- arnie