Turn your Instant Pot on and set it to saute function, high. Add the olive oil. Once the oil starts to sizzle and pop, add the beef in a single layer. Season with salt, pepper, and Italian seasoning. Sear the beef chunks for 2-3 minutes, or until brown on all sides. Remove the seared beef chunks to a clean plate and repeat with any additional meat, if necessary.
Add the seared beef back to your pressure cooker and sprinkle 2 tablespoons flour. Stir the beef to prevent burning. Saute for 1-2 minutes. Add the garlic and saute for one minute more.
Add the beef broth, Worcestershire sauce, diced tomatoes, onion, potatoes, carrots, celery, and star anise. Mix well to combine and scrape up any browned bits that may be stuck to the bottom of the pot. Add the bay leaf.
Turn off saute mode. Close the Instant Pot lid and turn the steam release valve to the sealing position. Select the Manual / Pressure Cook setting; adjust to high pressure, and set the timer for 35 minutes. Press start (keeping in mind that it takes approximately 10-15 minutes for the pressure cooker to reach full pressure and start cooking).
When the cooking time is finished, release pressure naturally for 10 minutes before doing a quick-release and allow the remaining pressure to release according to the manufacturer’s instructions. Carefully remove the lid, remove the star anise, and set the Instant Pot back to high saute mode.
In a small bowl mix the 1 tablespoon cornstarch with 1-2 tablespoons of water to create a thick slurry. Stir the cornstarch slurry in with the beef stew, stirring frequently, until slightly thickened.
Serve immediately garnished with fresh parsley, if desired. Enjoy!