As title. Towns sometimes generate over player start point at spawn and bury players beneath ground and suffocate them.

There is a "spawn_protection_chunk_radius" configuration value. It should prevent this.
Edit: Actually limited to structure generation. Confirmed it is not applied on town.
Though all the AW structure generation is being done out of the "normal" generation sequence.
I can only say this is bad design, and might take a while to fix.

Fixed.