Yes, it is a Windows PC in console form. All Windows games should work without any problems, as should all other programmes such as Word, Excel, Teams, Firefox, etc. A mouse and keyboard can be connected via Bluetooth, and even an external screen via USB-C (with the appropriate cable). You can even delete Windows and install Linux if you want.

It's about on par with a 2 year old gaming laptop I'd say. Yes, you can run MSFS, but with mostly low/medium graphics. If you want more you'd have to cloud game or connect an external GPU.