Deductions & credits

Did you get a Stimulus payment for them before?  Yes it washes out with the baby.  

 

The Recovery rebate credit is really based on your 2020 return.

In your case, you received a stimulus for 1 qualified dependent based on your 2019 return.  Now that you are filing your 2020 return, your child is no longer under age 17, so he does not qualify and you only have 1 dependent that qualifies (the baby).  You received the stimulus already for 1 dependent.