What is the meaning of a single-family home if there is no requirement for a 'single family', technically multiple families could share a home as a household?

The word 'family' in the current zoning bylaw is a defined term that does not correspond with the use of the term in casual conversation. Since the new definition of 'household' is essentially the same as the old definition of 'family', two separate 'families' under the old definition would never be a single 'household' under the new one.

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1. Would this definition change allow people to share their home with any number of unrelated individuals?
2. How can we limit capacity of dwellings in town?
3. What is the meaning of a single-family home if there is no requirement for a 'single family', technically multiple families could share a home as a household?
4. Any ways to deal with the above issues while protecting DEI goals?