Set your Instant Pot setting to the sauté function on medium. Add about 1 tablespoon of olive oil. Place the bacon bits in the pan over medium heat and render out all of the fat. Continue to scrape the bottom of the pan to get the brown bits from the bottom of the pan and prevent burning. Once the bacon is browned after about 7 minutes, remove the bacon bits, and leave the bacon fat in the pan using a slotted spoon. Set aside on a paper towel-lined plate to soak up excess bacon grease.
Don't drain the fat, and add 1 more tablespoon of olive oil to the Instant Pot, followed by the onion and carrots. Season with a pinch of salt and pepper, and cook for about 5-7 minutes to soften. Once softened, add in 2 tablespoons of tomato paste and garlic, and cook until tomato paste has deepened in color, about 2-3 minutes, then remove from the Instant Pot and set aside.
Season the beef chunks generously with salt and pepper in a mixing bowl. Increase to medium-high heat on the sauté function. Add the remaining 1 tablespoon of olive oil to the pot, and cook the meat in 2-3 batches to not overcrowd the pan. Cook for 2-3 minutes on each side. The meat doesn't need to be cooked through completely. As you cook the meat, remove it from the pot and move the browned beef to a plate. Once all of it is browned, return it to the Instant Pot.
Add the cooked carrots and onions mixture and bacon, followed by 12 ounces of beef stock, 12 ounces of red wine, 2 cubes of beef bouillon, fresh thyme, and parsley. Use the flat edge of a spatula or wooden spoon to scrape the bottom of the pot for browned bits. Stir to combine, then top with a bay leaf or two, before putting on the lid of the Instant Pot and setting it to high pressure. Pressure cook for 40 minutes.
After the mixture has been pressure cooked for 40 minutes, allow it to natural release for 10 minutes, then do a quick release and take off the lid. Remove the bay leaves and discard them.
Return the Instant Pot to the sauté setting, and add in 2 tablespoons of unsalted butter, mushrooms, and pearl onions with a pinch of salt and pepper. Simmer for 10 minutes or so, until mushrooms have softened. Add more fresh parsley and thyme, and adjust seasonings to taste.
Serve over mashed potatoes, mashed turnips or cauliflower, with egg noodles, or with crusty bread. Enjoy!
Store in an airtight container in the fridge for up to 5 days. Reheat gently in the Instant Pot or on the stovetop.