Turn on the Instant Pot and select the Sauté mode. Add the olive oil and allow it to heat up. Season the beef cubes generously with salt and pepper. Add the seasoned beef to the pot in a single layer and sauté until browned on all sides, about 5-7 minutes. Once browned, carefully remove the beef from the pot and set it aside on a plate.
In the same pot, add the chopped onion and sauté for about 3-4 minutes until it becomes translucent. Add the minced garlic to the onions and sauté for an additional minute until the garlic is fragrant.
Return the browned beef to the pot along with any juices that collected on the plate. Add in the sliced carrots, diced potatoes, beef broth, tomato paste, dried thyme, dried rosemary, and the bay leaf. Stir everything well to combine all the flavors.
Close the Instant Pot lid securely. Ensure that the steam release valve is set to Sealing. Select the Pressure Cook function and adjust the timer to 35 minutes on high pressure.
After the cooking time is up, allow the pressure to release naturally for about 10-15 minutes. Once this time has passed, carefully switch the valve to Venting to release any remaining steam.
Once the pressure is fully released, remove the bay leaf from the pot. If you prefer a thicker stew, create a slurry by mixing 1 tablespoon of cornstarch with 2 tablespoons of cold water. Stir this mixture into the stew. Select the Sauté mode again and cook while stirring frequently until the stew reaches your desired thickness.
Taste the stew and adjust the seasoning with additional salt and pepper if necessary. Ladle the hearty beef stew into bowls and garnish generously with fresh chopped parsley.
Notes
For a thicker stew, use cornstarch to create a slurry.