When switching to GPU the display (the simple default cube is gray Blender is unresponsive, Switching out of GPU will crash or not responding.
It used to work buy with lots of crashes cycles does not work at all with iris GPU

This is also happening with 2.9.3.1 but these steps are in 2.9.0 LT
Steps

1. launch blender
2. system setting

cycles render devices to Open CL and check Intel Iris Plus graphics and Intel Core i7-1065G7 CPU @ 1.3GHz
Undo steps set to 16, default was 32
Memory cache limit set to 8192 (default was 4096) Computer has 16GB

3. Using default cube scene add a plane color cube red and plane blue, move cube on z axis so it sits on plane and make plane big enough to fill camera, camera at default 50mm
4. set to camera view and adjust y displacement so cube is centered
5. render is on evee and

6 viewport shading is set to material solid

7. try viewport shading material preview, scene is rendered ok
8. try viewport shading to render, and scene is still ok

9.switch to cycles with device set to CPU and scene is rendered OK and can scroll scene just fine.
NOW

10. switch device setting to GPU compute and scene turns gray

Can scroll still but scene is gray and Updating device keeps showing in upper left of render screen

11. also see screen grabs and system report
12. switch back to CPU and blender becomes non responsive and sometimes it may completely quit.

The only way to end blender now is to force quit in task manager

sometimes it will start the render when switched to GPU but its pixelated and unresponsive, if switched back to CPU it becomes unresponsive and the task manager shows a bunch of window command processors.
hopes this helps to trouble shoot problem, thank you very much

It was crashing often with the original driver installed by Microsoft but it would display in cycles and also render.
Updated driver to the one provided by intel which made it worse. Grey and crash as described above.
Going back to the Microsoft driver does not fix it. Same issue as after installed intel driver
Right now I put back the latest intel driver and problem persists.
Driver versions:

Diver MS, worked originally with crashes but no longer works if restored.
Tried going to intel driver hoping it would resolve crashes but it made it worse. and going back to this driver is still broken

Iris Driver installed by Microsoft
9/5/2020
27.20.100.8681

Iris Driver installed by Intel
3/30/3021
27.20.100.9466

switch device setting to GPU compute and scene turns gray

Can confirm it freezes but no crash here so far. Software returns to the normal state after a few minutes.

Happens only for the first time when rendering with GPU compute and guess this is expected.

I think the reported issue is also similar to T88420

I get this error in the Blender console just before it crashes. I updated to 2.9.3 same issue

Patrik,

T88420 describes this problem also.

Update. Updated to Blender 3.9.4 which still had the grey issue. I had previously reported that upgrading to the latest intel IRIS graphics GPU drivers had made it worse and that doing a Microsoft update which reinstalls the original surface pro 7 driver from Microsoft had not restored the render.

It is also necessary to go into add remove programs and remove all intel programs (3) that monitor for updates. (even if the intel driver is not active).
After doing this my GPU render worked. The first time it recompiled Kernels taking a brief time to do it and now it is working fine. Although the Blender instructions point to the latest Intel drivers, it is best to use the drivers that Microsoft provides for the surface. Also the intel tools MUST NOT be installed or fully removed if they were installed. This is a Microsoft Surface Pro 7 with i7 CPU and iris graphics. I am glad that this is resolved and can again use Cycles GPU render with this laptop.