In a large skillet, heat canola oil over medium high, add ground beef in an even layer. Allow first side to brown for 3 minutes; then cover evenly with taco seasoning. Add 1/4-cup water and green chilies. Fold chilies into beef; cook until no pink remains, 4 to 5 minutes; set aside to cool.

Working in batches of three, wrap tortillas in a moistened paper towel; microwave on high for 30 seconds to warm and make pliable for optimal rolling. Lay tortillas on cutting board one at a time. Working on bottom 2/3 of tortilla, smear with 1/4-cup refried beans about 5 inches wide; top with 1/2-cup ground beef and 1/4-cup shredded cheddar.

Take bottom edge of tortilla and fold it up to the top edge, then pull it back toward yourself while applying a slight amount of pressure to keep it tight. Once a cylinder is formed, fold sides of tortilla in about 2 inches on both sides to create an envelope. While holding it firmly, finish forming burrito by rolling cylinder to top of tortilla. Brush inside top edge of tortilla with warm water to help seal burrito. Repeat with remaining tortillas and ingredients.

Preheat air fryer to 375°F; spray the fryer basket with non-stick spray. Depending on the size of the basket, add two burritos with seam side down to basket, making sure there is plenty of room for air to flow between. Spray exterior of burritos with non-stick spray; air fry until crisp and golden brown for 10 minutes.

Repeat with remaining burritos. Serve with salsa and sour cream.