A well known idea is that for aerodynamic/streamlined bodies the friction drag is larger than pressure drag. Hence, a laminar boundary layer is preferable (only looking at minimal drag, no other design conditions).
Then, looking at the figure below it can be seen that the drag coefficient decreases with increasing Reynolds number, even at low angles of attack where one would not expect any significant flow separation. Also, up to Re 500000 one could expect laminar flow, but 'for sure' at Re 200000.
Is the XFOIL simulation realistic, or are there assumptions in the code which imply this behavior?