To clarify my simulations: they were an exploration of how well we could handle getting attacked by a large group of mid-yellow beasts. In this light, I assumed the wolves had 15 dice (~ what we and Kang's dog had at thunderdome redux), and gave them a couple of bonus damage on their attack.
Under these assumptions, we can take 10 attacks easily, but getting hit by 20 at once would wipe out about half our health and qi.
This does not, of course, account for possible other bonuses. They may be able to do more damage than this. These results should be used treated as loosely indicative of what kind of things we can handle, and not as a literal prediction of the strength of the wolves.
Anyway, the big thing that really helps is that, as
@Arkeus noted, that we can open from long range and thus have the wolves as unable to attack us for several turns. If we were, for instance, simply to open from max range of FVM (~70m ish), then they would have to spend the first turn just running at us. They would be debuffed, and Xiulan could blow them up. In the second turn, Elegy comes out, and most of them other than the Alpha should be stunned. Xiulan blows them up some more. If we're kiting at the same time, then we should now be a full round away from most of them again. This gives us a good number of turns to get all our debuffs down, and for Xiulan to bring the numbers down to something manageable.
At this point, we drop the flute, and switch to shooting since they're unlikely to last more than 4 turns.
Keep in mind that once our debuffs are up, the wolves should basically have no defensive dice. Xiulan will probably be hitting her maximum damage on most of them, and should be able to blow them up pretty fast.