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Add bacon to Instant Pot® and heat on Sauté setting. Cook bacon, stirring occasionally, until golden and crisp, about 10 minutes. Using a slotted spoon, remove bacon to a plate. Drain all but 1 tablespoon bacon fat from Instant Pot.
Add the butter to the bacon fat in Instapot. Add the onion, and cook, stirring occasionally, until softened, about 4 minutes. Add garlic and thyme to Instant Pot®, and cook, stirring, until fragrant, about 1 minute.
Pour in Swanson® Natural Goodness® Chicken Broth, Campbell’s® Condensed Cream of Chicken Soup, and 1 cup water. Whisk to combine. Add potatoes to liquid. Lock lid and cook soup at high pressure for 8 minutes. Release pressure manually.
Season soup with salt and pepper. Stir a few times just to break up the potatoes a bit and slightly thicken the broth.
Ladle soup into bowls and garnish with a dollop of sour cream, reserved cooked bacon, cheddar, and chives before serving.