Select “Saute” on the Instant Pot and heat the avocado oil until hot but not smoking (about 30-60 seconds).
Add the onion, bell pepper, and jalapeño pepper and cook until soft (about 3 minutes). Add the garlic and cook for another minute.
Add the tomato sauce, chili powder, chipotle pepper, cumin, garlic powder, onion powder, apple cider vinegar, salt, and oregano. Stir to combine.
Press “Cancel,” and add the bone broth and chicken. Secure the Instant Pot lid and move the vent knob to the sealed position. Select “Manual” and cook on high pressure for 20 minutes. When the cooking time is up, carefully move the vent knob to “Venting” to release the pressure quickly.
Remove the chicken to a cutting board and shred with two forks, then return the chicken to the pot and stir into the sauce.
Serve with desired toppings.