Set Instant Pot to saute. Add the sausage and beef to the pot. Cook, breaking meat apart with a spoon until it is no longer pink. Create a hole in the center of the meat and add olive oil. Add onion, garlic, salt and pepper and cook until soft and fragrant, about 3 minutes.
Transfer meat mixture to a bowl. Press cancel on the Instant Pot and add 2 tbsp olive oil. .
In a medium bowl, combine the Ricotta, 1 cup of the mozzarella, egg and Italian seasoning. Mix well.
Layer in even layers as follows: 1/3 of the sauce on the bottom of pan, 3 lasagna noodles, broken in thirds, 1/2 cup water, 1/2 of the meat mixture 1/2 of the cheese mixture, 1/3 of the sauce, 3 lasagna noodles, broken in thirds, 1/2 of the meat mixture, 1/2 of the cheese mixture, 3 lasagna noodles, broken in thirds, 1/2 cup water, 1/3 of the sauce, 1/2 cup Mozzarella cheese, Parmesan cheese.
Place the cover on the pot and set timer to 20 minutes on high pressure (pressure cook setting). It will take the pot around 20 minutes to build up pressure before it begins cooking.
When the lasagna is done, let the pressure release naturally on the pot until the float valve drops. Let sit for 5 minutes before cutting and serving.