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Place the chicken thighs in the bottom of the Instant Pot. Sprinkle with taco seasoning and a little additional salt and pepper.
Add the cream cheese, salsa, and broth and lock the lid into place. Use the manual setting and set the Instant Pot on high for 20 minutes. Once it's finished cooking, allow the pressure to release naturally for 15 minutes.
Use the vent to release any remaining pressure and then remove the lid. Remove the chicken to a plate and use an immersion blender to puree the sauce until smooth. Alternatively, you can transfer the sauce to a regular blender and puree.
Shred the chicken with two forks and add back into the pot. Toss to coat in the creamy sauce. Serve with lettuce wraps and top with chopped avocados and shredded cheddar cheese.