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if your approval drops, make something to increase it. large populations are trouble if you don't up approval, but small population worlds output much lower levels of science, production, etc.
its a balancing act, as is much of the game.
The red exclamation mark simply means that the current limit is reached and your population can't grow anymore.
To get more population capacity aside from cities you can upgrade the colony capital twice for +1 each. Some resources (Monsantium iirc) also increase population capacity, as does the Bernal Sphere precursor artifact.
Also cities give a 10% population cap increase per level of adjacency so you should never need to build more than one on all but the biggest planets if you take advantage of that. Which is a good thing since cities consume food.
Much easier to put a hospital, farm or food distribution (or all three) next to one and raise population capacity that way instead of building a second or third city. Some approval buildings give population adjacency too.