Pat the cubed lamb meat dry with a paper towel and place in a large bowl with the salt, pepper, and 1 tablespoon arrowroot flour. Toss until evenly coated.
Turn the Instant Pot on the sauté function and add the oil. Working in batches as needed, sear the lamb meat until golden brown on all sides, 2 to 3 minutes per side. Transfer the browned meat to a separate plate and cook the remaining meat.
Add the garlic, celery, carrots, onions, and chili flakes (if using) to the Instant Pot. Stir and sauté the veggies until softened, scraping up the brown bits from bottom of the pot, about 3 minutes.
Add the tomato paste and stir to coat the veggies. Add the red wine and cook, scraping brown bits from bottom of the pot, about 2 minutes.
Add the potatoes, seared lamb (plus any of its juices), 1 cup beef broth, thyme, rosemary, and bay leaf. Stir to combine.
Securely fasten the lid on top of the Instant Pot. Hit the 'cancel' button, then select the 'meat/stew' function and set the time to 40 minutes.
When the cook time has completed, hit the 'cancel' button and manually release the pressure by carefully turning the valve to 'venting.' Let vent until all the steam has released, then carefully remove the lid.
Turn the Instant Pot back to the 'sauté' function. Meanwhile, in a small bowl, combine the remaining 1 tablespoon of arrowroot flour with the remaining 1/4 cup of beef broth. Whisk until the arrowroot has dissolved in the liquid.
With the sauté function on, slowly pour the slurry into the Instant Pot, stirring, until the mixture has thickened, about 2 minutes. Divide into bowls, serve, and enjoy!