Hello,
from Embedded Wizard point of view, there is no problem to drive a display with XGA (or higher) resolution. The Graphics Engine of Embedded Wizard is able to draw a GUI with 1024x768 pixel or any other size - as long as the hardware is able to do that.
I assume your question is more related to the physical layer - e.g. how to drive the LVDS display with a NXP RT1050 target. Since we have not tried this scenario, we cannot give you a relieable answer. Please try to get some help from NXP side.
From Embedded Wizard side, the framebuffer is the interface.
Best regards,
Manfred.