Preheat the air fryer to 370°F. Brush the basket with olive oil.
Stir breadcrumbs and milk in a bowl. Let the crumbs soak for 5 minutes.
Combine beef, beaten egg, onion, garlic, ketchup, Worcestershire, mustard, Italian seasoning, salt, and pepper.
Fold in the soaked crumbs until just mixed. Do not overwork the meat.
Shape into a compact 6x3-inch loaf. Place the loaf in the greased basket.
Air fry for 15 minutes.
Whisk ketchup, brown sugar, and vinegar for the glaze.
Brush the loaf with glaze. Air fry 10–12 minutes more, until 160°F inside.
Rest 5–10 minutes before slicing. Serve warm.