From what ive read yes and no.
The max alive there is for gamestage period. But then the code algorithm kicks in. you pick setting at game startup + there is an AIGamestagePartySpawner Class controller + There is the AiDirectorBloodmoonParty class controller, you add people to your party
so that becomes the new variable, but if they log off, then the variable down by that amount, and recalculates dont know how many ticks it takes to do that though. Whom ever has the highest gamestage and is on line, i think becomes the spawn boss so to speak.and there is one more obscure place called Kmaxentities sort of a shutoff valve for instantiation of entities. its usually set to 60. hard coded. there is one other place but i forgot where, this place has a hard coded 8 entity max from legacy setting. so all in all depending on the changing volume of your party. Deaths and the above controllers you get the max alve adjusted value. Hope it helps.