Season chicken thighs with salt, pepper, garlic powder, paprika, and Italian seasoning on both sides.
Place the halved baby potatoes and carrots in a large bowl and season with olive oil, salt, pepper, garlic powder, and Italian seasoning. Give it a good mix and set aside.
Press the SAUTE button on the Instant Pot and add some olive oil.
Once the Instant Pot is hot, drop in the chicken and cook for 4-5 minutes on each side until the skin has become golden brown. Remove chicken thighs and set aside.
Add the butter, balsamic vinegar, and garlic to the Instant Pot and cook for 1 minute.
Add the chicken broth.
Add the chicken back into the Instant Pot and the potatoes, chicken broth, and carrots and set the machine to PRESSURE COOK with the time set for 6 minutes. Cover and lock the lid in place and turn the valve to the Pressure setting.
When done, release the pressure naturally for 6 to 8 minutes.
Remove the chicken, potatoes, and carrots from the Instant Pot and place them on a serving dish. Spoon sauce over everything and garnish with chopped parsley.