Prepare the Beef (10 minutes)
Pat beef cubes dry with paper towels. Season with salt and pepper, then toss lightly in flour.
Cook the Bacon (10 minutes)
In a large Dutch oven over medium heat, cook diced bacon until crisp. Remove with a slotted spoon and set aside. Leave 2 tablespoons of bacon fat in the pot.
Brown the Beef (15 minutes)
Increase to high heat. Working in batches, sear beef cubes until browned on all sides. Remove and set aside with the bacon.
Sauté Vegetables (8 minutes)
Add carrots and onion to the pot. Cook until softened and golden, about 5–6 minutes. Add garlic and cook for 1 minute more.
Deglaze with Wine (5 minutes)
Stir in tomato paste, then pour in the red wine. Scrape up browned bits from the bottom of the pot. Bring to a simmer.
Build the Sauce (2 minutes)
Return beef and bacon to the pot. Add beef stock (just enough to cover), thyme, and bay leaves. Bring to a gentle simmer.
Braise (2.5 to 3 hours)
Cover the Dutch oven and transfer to a preheated oven at 325°F (160°C). Cook for 2½ to 3 hours, until beef is fork-tender.
Prepare Garnishes (20 minutes, near the end)
In a skillet, melt butter. Add pearl onions and mushrooms, sautéing until golden. Set aside.
Finish the Stew (5 minutes)
Once the beef is done, remove bay leaves. Stir in mushrooms and onions. Taste and adjust seasoning with salt and pepper.
Serve
Ladle into bowls, garnish with fresh parsley, and serve hot with mashed potatoes, noodles, or crusty bread.