Set the Instant Pot to saute mode. Once hot, add butter. Add the garlic, bay leaf, celery, and onion then saute for 2 minutes until onion is soft and translucent.
Add carrots, potato gnocchi, salt, black pepper powder, Italian seasoning, vegetable broth, and thyme. DO NOT stir but press slightly so that gnocchi is underwater.
Close the lid. Turn off the IP from saute mode and set to manual or pressure cook, on high pressure for 1 minute with the pressure valve in the sealing position.
Once done, a quick release of the pressure. Open the pot, take out the bay leaf and thyme and press the saute button again.
Add chopped spinach and heavy cream. Stir and let the soup simmer for 2 minutes.