[This answer was written when the question was tagged with C and C++. I have not yet re-examined it in light of OP’s revelation they are using C++ rather than C.]
size_t is the type the C standard designates for working with object sizes. However, it is not a cure-all for getting sizes correct.
size_t should be defined in the <stddef.h> header (and also in other headers).
The C standard does not require that expressions for array sizes, when specified in declarations, have the type size_t, nor does it require that they fit in a size_t. It is not specified what a C implementation ought to do when it cannot satisfy a request for an array size, especially for variable length arrays.
In your code:
const uint32_t N = 65537;
uint8_t values[N];
values is declared as a variable length array. (Although we can see the value of N could easily be known at compile time, it does not fit C’s definition of a constant expression, so uint8_t values[N]; qualifies as a declaration of a variable length array.) As you observed, GCC warns you that the 32-bit unsigned integer N is narrowed to a 16-bit unsigned integer. This warning is not required by the C standard; it is a courtesy provided by the compiler. More than that, the conversion is not required at all—since the C standard does not specify the type for an array dimension, the compiler could accept any integer expression here. So the fact that it has inserted an implicit conversion to the type it needs for array dimensions and warned you about it is a feature of the compiler, not of the C standard.
Consider what would happen if you wrote:
size_t N = 65537;
uint8_t values[N];
Now there would be no warning in uint8_t values[N];, as a 16-bit integer (the width of size_t in your C implementation) is being used where a 16-bit integer is needed. However, in this case, your compiler likely warns in size_t N = 65537;, since 65537 will have a 32-bit integer type, and a narrowing conversion is performed during the initialization of N.
However, the fact that you are using a variable length array suggests you may be computing array sizes at run-time, and this is only a simplified example. Possibly your actual code does not use constant sizes like this; it may calculate sizes during execution. For example, you might use:
size_t N = NumberOfGroups * ElementsPerGroup + Header;
In this case, there is a possibility that the wrong result will be calculated. If the variables all have type size_t, the result may easily wrap (effectively overflow the limits of the size_t type). In this case, the compiler will not give you any warning, because the values are all the same width; there is no narrowing conversion, just overflow.
Therefore, using size_t is insufficient to guard against errors in array dimensions.
An alternative is to use a type you expect to be wide enough for your calculations, perhaps uint32_t. Given NumberOfGroups and such as uint32_t types, then:
const uint32_t N = NumberOfGroups * ElementsPerGroup + Header;
will produce a correct value for N. Then you can test it at run-time to guard against errors:
if ((size_t) N != N)
Report error…
uint8_t values[(size_t) N];