Turn Instant Pot to saute and add butter, onions, green peppers, jalapenos, and seasoning.
Saute until the onions are translucent.
Add chicken broth and cubed chicken. (I cut my chicken into big cubes.)
Set Instant Pot to cook on manual for 15 minutes. It will take several minutes for the Instant Pot to come to pressure then it will begin to count backward.
When it is finished with the cycle, allow a 5-minute natural release.
When the 5 minutes are complete, release steam. I always cover the valve with a towel while the steam is releasing.
Turn the Instant Pot to saute.
Remove the chicken and, using two forks, shred in big chunks, then return the chicken to Instant Pot.
Add heavy whipping cream, softened cream cheese, cheeses, and cooked bacon, stirring until the cheeses melt.
Sprinkle xanthan gum on top to thicken the soup and turn Instant Pot to warm. Simmer for 10-15 minutes so that the soup can thicken. It takes Xanthan Gum a few minutes to work.
Serve with grated Monterrey Jack Cheese, Cheddar Cheese, jalapenos, and cooked bacon sprinkled on top.