In the Instant Pot using the sauté function, heat oil and add shallots, garlic, sage, and 1/4 teaspoon salt; cook, uncovered, for 2 minutes, stirring. Add rice and cook 2 minutes, stirring. Hit cancel to turn off sauté function. Add broth and butternut squash. Cover and lock lid. Select Manual/Pressure Cook and cook at high pressure for 6 minutes. Once cooking is complete, release pressure by using a quick release. Stir in Parmesan, remaining 1/4 teaspoon salt, and pepper. Let stand 5 minutes before serving.