Is the series s supposed to get really warm

Yes, High-performance electronics in a small box gets one, it is performing as intended

Just got my xbox series s and after about 2 hours i noticed it was getting pretty warm, just checking if this an issue anyone else has had

Hi MattWright09! I have a series s myself and it does get pretty warm after hours of use, after all it is a pretty powerful machine. Just make sure you have enough room for it to ventilate to avoid any problems. If it is overheated or too hot to touch then
there definitely is a problem. Hope this helps, and you have yourself a great holiday!

So usually when I play on my series s the fan makes a loudish noise....

The Series S, just like the Series X is designed to be quite, in normal gaming (even when play X|S optimised games) the Series S fan should not be audible. It should be pretty much silent.

Have you changed the location of where your console is located? These consoles get warm (hot even), this is normal. So their location is actually more important than hearing the fan spinning.

If this is an S series console, try cleaning the eject button with warm water and soap solution ensuring the console is only getting damp, not wet and only in the area. At times debris can make the console think you are pressing eject.

The S contains high end electronics in a small box. The fan will run and it will get warm

Putting it vertical will only compromise cooling, since hot air goes up. While it is designed for both positions, and there is debate how much difference it really makes, hot air fan pointing up is always best.

A Series X should always be vertical for optimal. It's a literal chimney.