"$()" is not a system command, but a shell syntax pattern that runs the command in a subshell. xargs is not a shell, so it cannot execute it. It should be possible by having it execute "bash" or another shell, with the code as the argument to that.
BTW, it may help if you provided more details about what you are trying to do, such as what the input to this command should be, and/or what you want to get out of it.
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