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I understand that dedicated servers in Valheim normally has a cap of 10 players. Is there a way to bypass this?

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There appears to be a mod that allows you to increase the maximum number. The mod is called ValheimPlus, which says:

Modify the maximum amount of players on a server.

This article explains how to use the mod to change the maximum players:

They will need to open the BEPINEX folder in their root folder and then open the Config folder. They will need to double-click the Valheim Plus document to open it in Notepad or a similar plain text editor program.

This document presents players with a list of options and settings. Anything listed as false needs to be changed to true to turn that section of features on in-game. Players will need to scroll down until they find the section labeled [Server]. Here, under maxPlayers=, they can change the number from the default of 10 to whatever they would prefer. Fans of the game have suggested 20 is the optimal number. Any more, and the game and server will begin to experience lag and desync issues.

Obviously, mods aren't official, so expect possible unwanted side effects, like crashes.

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