Pat the beef dry and cut into 2-inch cubes. (You can also have a butcher do this for you.)
Place the cubes in a large ziplock bag along with flour, onion powder and Italian seasoning. Shake until well coated.
Turn on the Instant Pot Saute function. Add 1 tbsp oil and once hot, add in enough beef to reach 3/4 full in one layer.
Brown the meat on all sides for 3-5 minutes total, stirring occasionally. Transfer to a plate and reserve.
Repeat the previous step using the remaining 1 tbsp oil.
Add all remaining ingredients to the Instant Pot: the reserved beef, garlic, onions, carrots, baby potatoes, red wine, Worcestershire sauce, Italian seasoning, bay leaf, tomato paste, beef broth and cornstarch. Mix well.
Cover the Instant Pot and close the steam valve. Set to Manual High Pressure to cook for 40 minutes.
When the cycle is complete, allow the Instant Pot to release pressure naturally (about 10 minutes depending on the model).
Remove the lid and stir in the optional peas and parsley. Add salt and pepper to taste. Serve and enjoy!