Will mcfs run on a laptop with an Iris Xe graphic card?

It might, depends on which one you have. The system requirements were created before Iris was on on market. What specific laptop do you have?

I don't recommend running any game, especially one this demanding, on a laptop.

Here are the mimium and recommended specs. As you can see the iris card is not listed.

Technically speaking you can run it on Iris Xe, but it depends what the rest of your specs are.

I've seen MSFS2020 running on an Intel 'Tiger Lake' i7 1165G7 (which uses Intel Iris Xe) @720p low settings. How stable it is though I couldn't say. It seemed to be running in the low 30's in terms of frame rate.

Not really, at least not very good. The Xbox Series S would run it better (and look lot better as well). While it is possible to 'run' (and I use the word 'run' loosely) MSFS2020 on such a machine, it would be everything at low @720P.

The biggest issue here is that this laptop (and practically every other 2-in-1 laptop) only has Intel Iris XE graphics. This is not a 'graphics card', it's graphics hardware built into the CPU, and pretty basic graphics hardware at that.

Your graphics card is the likely culprit. Games like Final Fantasy can become pretty graphics intensive, and most games prefer having a dedicated graphics card. The Intel Iris Xe is definitely a step up from previous ones offered for regular laptops, though! You should see an improvement on some games, but you're still going to struggle to run others.

I ran a couple of benchmark tests using your specs. It's about equal with the lowest end graphics card that this game needs to run.

https://gpu.userbenchmark.com/Compare/Nvidia-GT...

Since this isn't a dedicated gaming machine you're likely going to keep seeing graphically intensive games struggle. Make sure you keep your drivers up to date, as well, as those can occasionally patch issues that make it difficult to play certain games.