Set your Instant Pot to sauté on high for 15 minutes and add the butter.
Add the diced bacon and allow it to start to brown and curl.
Sauté the shallots with the butter and bacon until they soften and turn translucent.
Add the garlic and continue Sautéing for another 2-3 minutes or until the garlic becomes aromatic.
Pour in the Red Wine Vinegar and Chicken stock and deglaze the bottom of the pot.
Add the remaining ingredients (except for the corn starch and water) and set the Instant Pot to Pressure Cook on High for 10 minutes.
Allow the pressure cooker to naturally release for 15 minutes.
Once the pressure is released, remove the chicken and set it aside. Make a slurry in a separate bowl using the water and cornstarch. Pour the slurry into the Coq au Vin, stirring to fully combine.
Place the chicken back into the Instant pot and set it to Sauté to bring to a simmer allowing the sauce to thicken. This will take about 5-10 minutes or until your desired sauce thickness has been reached.
Serve your Coq au Vin with some amazing matched potatoes and maybe even some crusty french bread to clean up the whole plate when you're done.