Vivado IP integrator is fully compatible with the Isolation Design Flow. In some cases, it even makes it easier, for example, the ability to add hierarchy with a single click/command.
However, there is one feature to be mindful of when creating isolated designs in Vivado IP integrator. To preserve the IP being instantiated, IP integrator automatically adds the DONT_TOUCH property to all instances of IP. This is a good thing, because it adds the IP vendors’ IP without modification. However, this impacts the feature of IDF where isolated nets can drive multiple isolated regions. In this case, the Vivado tool attempts to split that net to follow IDF rules but is prevented from doing so due to the DONT_TOUCH attribute. Thus, if an IP is to be marked as an isolated module, that IP must be wrapped with a level of hierarchy that does not have the DONT_TOUCH attribute. In such cases, follow the Vivado Design Suite User Guide: Implementation (UG904) to add a level of hierarchy to a module (a right-click operation).