Turn on your Instant Pot to the sauté setting.
Add the olive oil and bacon when it becomes hot.
Stir the bacon until browned and slightly crispy then transfer to a large plate
Add the cubed meat in two batches seasoning with salt and pepper.
Transfer the seared meat to the plate with the bacon.
Add the red wine and scrape the bottom of the pot with a wooden spoon.
Simmer the red wine for 2-3 minutes and then add both meats back into the pot.
Add the remaining ingredients and stir to combine.
Switch the Instant Pot setting to beef/stew setting.
Place the lid on the Instant Pot making sure the release valve is in the locked position.
Cook the beef in the Instant Pot for 30-35 minutes, making sure it is fork tender.
Once the beef stew is done cooking, carefully release the steam and take of the lid.
Switch back to the sauté setting and combine the water and cornstarch together in a small cup.
Add the cornstarch mixture to the stew and stir gently.
Cook for a few more minutes until the stew has thickened and serve at once.