Set Instant Pot to saute setting on high heat.
Add bacon and cook until crisp. Remove bacon and most of grease to a paper towel lined plate.
Add onion and ground sausage. Cook until sausage is no longer pink. Add garlic and cook for 1 minute. Turn heat off.
Pour a bit of broth into bottom of Instant Pot to loosen any bits from the bottom. Pour remaining broth into the pot along with Italian Seasoning, 1 Tablespoon parsley and bay leaf.
Close and set Instant Pot to pressure cook for 4 minutes. Cancel and quick release
Set Instant Pot to saute on high. Add gnocchi and stir. Once gnocchi begin to float, add roasted red peppers, spinach, cream and half the cooked bacon. Continue to cook for about 3 more minutes.
Remove bay leaf and serve. Garnish with a bit of shredded parmesan cheese, parsley and remaining bacon.