When the pot is hot, add half the beef stew meat, add a dash of salt and pepper, and let it brown for a few minutes (until it releases easily from the pan).  Flip the meat and allow it to brown on the other side. 

Once all sides are browned, remove the beef to a holding bowl or plate.

Add the other tablespoon of oil and repeat the process with the second half of the beef stew meat.

Next, add the chopped onion to the Instant Pot and saute for 2-3 minutes, until it begins to soften. Next, add the minced garlic to the pot, press cancel to turn off the heat, and stir the onions and garlic together.

Next, pour in  1 cup of beef broth,  scraping any browned bits that are stuck to the pot.  Once you’ve removed as much of the browned bits as possible, pour in the remaining 2 cups of broth.

Add the Worcestershire sauce, Italian seasoning, and bay leaf  to the Instant Pot and stir to combine.

Next, add the beef stew meat back into the Instant Pot.  Place the carrots and potatoes on top of the beef.

Close the Instant Pot lid and turn the steam release valve to the sealing position.

Press the Manual/Pressure Cook button and set the cook time to 35 minutes. (The Instant Pot will take 10-15 minutes to reach pressure before the cook time will appear and start counting down.)

While the Beef Stew is cooking, mix together the cornstarch and water in a small mason jar.  Make sure the jar is closed tightly and give it a good shake to fully combine the cornstarch and water.  (If you do not have a small jar, you can mix them together in a bowl, but the jar method produces a much smoother mixture.)

When the Beef Stew is done cooking, allow the Instant Pot to naturally release for 10 minutes.  After 10 minutes has passed, you can carefully quick release any of the remaining steam.

Finally, remove the bay leaf and stir in your cornstarch mixture. Turn the saute mode back on and allow the stew to simmer, carefully stirring occasionally, until slightly thickened.