Set the Instant Pot to Sauté and heat 1 tablespoon olive oil until shimmering.
Add the chopped garlic, onion powder, and Italian seasoning; sauté, stirring, for about 1 minute until fragrant.
Add the ground beef and cook, breaking it apart with a wooden spoon, until browned; season with 1 teaspoon salt and 1/4 teaspoon black pepper. Drain excess grease if desired.
Pour 1/2 cup of the water into the pot and scrape any browned bits from the bottom to deglaze the pot.
Break the spaghetti noodles in half and arrange them in a criss-cross pattern on top of the meat in handfuls so they sit evenly.
Add the remaining water over the noodles, then pour the diced tomatoes (with their liquid) and the crushed tomatoes or pasta sauce over the center of the noodles, keeping liquid away from the pot edges as much as possible.
Close the lid, set the valve to sealing, and cook on HIGH pressure for 7 minutes (the pot will take ~10 minutes to come to pressure).
When the timer finishes, wait 1 minute, then carefully quick-release the remaining pressure by switching the valve to venting.
Open the lid away from your face. Stir the pasta well several times; let it sit 5–10 minutes to thicken before serving.