Set the Instant Pot to 'Sauté' mode. Add olive oil and wait until it shimmers. In batches, add the beef cubes, searing until browned on all sides (about 5-7 minutes). Remove browned beef and set aside.
In the same pot, add the chopped onion and cook until translucent (about 3-4 minutes), followed by minced garlic for another minute until fragrant.
Return the browned beef to the pot. Stir in the carrots, potatoes, beef broth, tomato paste, Worcestershire sauce, thyme, smoked paprika, bay leaf, salt, and pepper.
Close the lid of the Instant Pot, ensuring the valve is set to 'Sealing'. Select 'Manual' and set the timer for 35 minutes.
Once cooking is complete, perform a 'Natural Release' for 10 minutes, then switch to a 'Quick Release' to release any remaining pressure.
If desired, mix cornstarch with 2 tablespoons of water to create a slurry. Set the Instant Pot to 'Sauté' again, stir in the slurry, and simmer for a few minutes until it thickens.
Discard the bay leaf and taste for seasoning, adjusting with more salt and pepper if needed. Garnish with fresh parsley.
Notes
Feel free to add other vegetables like peas or green beans for extra flavor.