Turn the Instant Pot to saute.
Put the bacon bits in the pot and fry until they are cooked through. Using a slotted spoon, remove the bacon bits from the pot and leave on a paper-towel lined plate. Leave the grease in the pot.
Add the onions and carrots into the pot and saute in the bacon grease. You may add a tablespoon of olive oil if the pot gets dry. Cook until the carrots and onions soften, then remove them from the pot.
Add about 1 tbsp of olive oil into the pot and about ⅓ of the beef, so that it is all in one layer. Allow the beef to brown on each side. Do this in batches until all the beef is brown on the outside, adding more olive oil as the pot gets dry. Once all beef is browned, remove it to a separate bowl.
Add a splash of beef broth into the pot. Use a wooden spoon or spatula to scrape up any brown bits stuck to the bottom of the pot. This is important so as not to get a burn notice.
Add the rest of the broth and the wine into the pot. Then add the bacon, cooked carrots and onions, seared beef, garlic, herbs, tomato paste, and mushrooms.
Put the lid on the pot and cook on HIGH for 45 minutes.
When the timer is done, allow for a 10 minute Natural Pressure Release. Then Perform a Quick Release.
Open the lid, and turn the pot to SAUTE and bring the sauce to a boil. In a small bowl, add 6 tbsp water to 6 tbsp flour and mix until the flour is dissolved, forming a slurry. Add the slurry into the stew. Allow to boil for 5 minutes on SAUTE until the sauce thickens.
Serve with mashed potatoes, croutons, or noodles.