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Season beef chunks with salt and pepper, then coat with flour.
Turn on 'Saute' function on Instant Pot, and brown meat in two batches. Put browned meat onto a plate covered with a paper towel.
In a separate frying pan, fry bacon over medium high heat, removing cooked bacon onto the beef plate. Discard bacon fat.
Fill Instant Pot with beef, bacon, garlic, bay leaf, wine, and beef stock. Close and set Instant Pot to 'Manual' and set it to cook on high pressure for 20 minutes.
Meanwhile, brown onion in the same pan as the bacon. Set aside.
When the first 20 minutes are up with the beef, do the quick pressure release. Add in the onions, carrots, potatoes, celery, and mushrooms. Salt and pepper to taste.
Close the lid, set the vent back to pressure cooking position, and set it to cook for another 10 minutes.
Make a slurry with the flour and water and some salt and pepper. After the '10 minutes' are up, let it sit for another 10 minutes, press 'Cancel,' and then do the quick pressure release.
Turn it back onto 'Saute,' stir in the slurry and let it cook until it reaches the consistency you like.
Serve with some warmed french bread.