The song is meant to teach kids counter words. In every number from 1 to 10, there is an example of a number + counter for that kind of concept, then でも, and then the actual word that needs the counter that was used.
If you look at the example word given for each number+counter word carefully, you will notice that it resembles the next number.
- 一本{いっぽん} でも にんじん
- 二足{にそく} でも サンダル
and so on.
So I don't see why でも couldn't mean "but". The actual meaning is vague, though, because the song doesn't have a real grammatical structure. It's just a list of amount+でも+item
.
Some possible interpretations of the function of でも here:
- There is a cylindrical thing, but it's (called) a carrot.
- The thing is called a ninjin (that sounds like 2), even though it is cylindrical (and is referred to as something that sounds like 1).
- Whatever sounds logical. It would ruin the meaning of the song to say that there is only one correct interpretation.