Add 1 Tbsp olive oil to the instant pot. Add onions, garlic, celery, carrots, tomato and tomato paste to the pot. Season well with salt and freshly ground black pepper. Stir.
Season beef stew with salt, black pepper and 4 Tbsp of arrowroot starch (or cornstarch). Add beef and butternut squash to the pot. Season butternut squash with salt and freshly ground black pepper.
Season everything with sweet Hungarian paprika, thyme, rosemary and add 2 bay leaves. Stir everything. Pour wine and beef broth, and the remaining 2 Tbsp of the olive oil.
Plug the instant pot. Close the lid, and turn the valve to sealing. Press Meat/Stew button and cook on Normal/High Pressure for 30 minutes.
When it's ready, press Keep Warm/Cancel button and turn the steam release to venting (aka venting).