Yes, $\bmod P(x)\!-\!x\!:\ \color{#c00}{P(x)\equiv x}\,$ so $\,P(P(\color{#c00}{P(x)}))\equiv P(P(\color{#c00}{x}))\equiv P(x)\equiv x\ $
We iteratively applied the Polynomial Congruence Rule thrice to replace $\,P(x)\,$ by the congruent $\,x\,$ (the linked proof of the rule is given for integers but works in any commutative ring since it uses only ring axioms). An obvious induction extends this to $\,P^n(x)\equiv x\,$ for all $\,n\ge 0\,$ yielding
Corollary $\ P(x)\!-\!x\,$ divides $\, P^n(x)\!-\!x\,$ for all $\,n\in\Bbb N,\,$ and all polynomials $\,P(x)$
Hence - from a modular perspective - we can view it as a special case of the obvious
$\quad\ $ namely: $\, $ if $\ \color{#c00}{f(x) = x}\ $ then $\, {f^{\large n}(x) = x}\,\Rightarrow\, f^{\large n+1}(x) = f^n(\color{#c00}{f(x)})=f^n(\color{#c00}x)=x$
As usual, modular arithmetic simplifies the matter by replacing divisibility relations by more intuitive arithmetic (ring) operations, enabling us to appeal to our well-honed algebraic (ring) intuition from common number systems.