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In a large zip-top bag, combine flour, salt, pepper, onion powder, and ½ teaspoon Italian seasoning. Add meat and shake until well coated.
Set the Instant Pot to SAUTE, add cooking oil and brown the meat on all sides. Transfer browned meat onto a large plate.
Place the pot back in the pressure cooker and add onions and garlic and sauté for a minute or two then add the balsamic vinegar and tomato paste until just hot enough to deglaze the pot, about 1 minute.
Add the beef back into the pot along with potatoes, sweet potato, carrots, celery, Worcestershire sauce, the remaining 2 teaspoons Italian seasoning, bay leaf, beef broth and star anise if using. Stir to combine. If there is not enough liquid to cover the vegetables, add water - only as much as needed.
Cover and seal the lid and set to 20 minutes with High Pressure on Manual mode. Allow the pressure cooker to release naturally for at least 15 minutes. Adjust seasonings with salt and pepper if necessary (discard bay leaf and star anise if used). Serve hot with fresh parsley.
Make a slurry by whisking 3 tablespoons of cool water with 2-3 tablespoons cornstarch or flour. Set the Instant Pot to SAUTE and allow the stew to come to a boil and thicken up.