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Yes, But.
With the gasses trying to work against the airflow along the side of the car its actually going to be more of a hinderance than a back box on the car.
Thats the best way to run in a new engine, hard, giving it lots of load, but not lots of revs, so full acceleration in 2nd 3rd 4th, to bed the rings in nicely. They also seem to last longer if they are given a hard run in.
only use a stand if your stripping and rebuilding.
And yes its fine to work on the engine with it just on the hoist, just lower it to the ground ideally, as at the end of the day its only a jack!