In a bowl, add mushrooms, mushroom soup, sour cream, salt and black pepper and gently, stir to combine.
Grease the insert of your Instant pot with non-stick cooking spray.
In the insert of Instant Pot, place chicken and top with mushroom mixture and water evenly.
Secure the lid and select manual high pressure on Instant Pot.
Cook for about 25 minutes and carefully do a Natural release.
Dish out the chicken and shred with fork.
Transfer the chicken back to the pot and select sauté.
Sauté for 3 minutes and serve hot with the topping of chopped bacon.