Hi WDNJSQ,
There is no incompatibility between iStack and VXLAN/VPLS/MPLS/LDP. However stacked switches are not recommended to use MPLS LDP, as per the documentation link (limitations for MPLS LDP) below, this is because the forwarding resources are limited and may reach the limit easier when in the stack, if the limit is reached traffic may be interrupted.
On a stack the CPU of the Master is used to process protocol packets.
https://support.huawei.com/hedex/hdx.do?docid=EDOC1100054000&id=EN-US_CONCEPT_0156742923&lang=en - Limitations for VXLANs
https://support.huawei.com/hedex/hdx.do?docid=EDOC1100054000&id=EN-US_CONCEPT_0141118411&lang=en - Limitations for VPLS
https://support.huawei.com/hedex/hdx.do?docid=EDOC1100054000&id=EN-US_CONCEPT_0141113123&lang=en - Limitations for MPLS LDP
I hope it helps!