Yes, you can use jQuery selectors on data returned to mutation observer callbacks.
See this jsFiddle.
Suppose you had HTML like so and you set an observer, like so:
var targetNodes = $(".myclass");
var MutationObserver = window.MutationObserver || window.WebKitMutationObserver;
var myObserver = new MutationObserver(mutationHandler);
var obsConfig = {
  childList: true,
  characterData: true,
  attributes: true,
  subtree: true
};
//--- Add a target node to the observer. Can only add one node at a time.
targetNodes.each(function() {
  myObserver.observe(this, obsConfig);
});
function mutationHandler(mutationRecords) {
  console.info("mutationHandler:");
  mutationRecords.forEach(function(mutation) {
    console.log(mutation.type);
    if (typeof mutation.removedNodes == "object") {
      var jq = $(mutation.removedNodes);
      console.log(jq);
      console.log(jq.is("span.myclass2"));
      console.log(jq.find("span"));
    }
  });
}
setTimeout(function() {  
  $(".myclass").html ("[censored!]");
},1000)  
<script src="https://cdnjs.cloudflare.com/ajax/libs/jquery/3.6.0/jquery.min.js"></script>
<span class="myclass"> 
  <span class="myclass2">My 
    <span class="boldly">vastly</span> improved
  </span> 
  text.
</span>
 
 
You'll note that we can jQuery on the mutation.removedNodes.
If you then run $(".myclass").html ("[censored!]"); from the console you will get this from Chrome and Firefox:
mutationHandler:
childList
jQuery(<TextNode textContent="\n ">, span.myclass2, <TextNode textContent="\n text.\n ">)
true
jQuery(span.boldly)
which shows that you can use normal jQuery selection methods on the returned node sets.