vs. 1: Sin is to be repented of, and not repeated. There is no need for an increase of grace. God's grace is sufficient (2 Cor. 12:9). Increasing sin to increase grace is to suppose that God has not poured out enough grace from the beginning. God poured out His grace by pouring out His mercy.
vs. 2: This death is not a literal death, but a spiritual death. The question confirms that if you have died to sin (spiritually), then your renewal will absent the desire of sin in your life.