In the instant pot, add olive oil, chicken, garlic, soy sauce, pad thai sauce, water and rice noodles. Make sure rice noodles are pushed down in the water.
Close the lid set the Pressure Release Valve to sealing.
Set to manual and pressure cook on high for 2 to 3 minutes.
When timer goes off, press cancel and do a quick release of the steam (follow manufacturer instructions), waiting until the pressure gauge drops down and the lid is safe to open.
Add carrots, red and yellow peppers and half of peanuts, tossing carefully.
Place lid back on and let sit for 5 to 7 minutes.
Remove lid and serve with chopped green onions, cilantro and peanuts.