Prep and Sear Beef:
Pat beef dry and season with salt and pepper. In a large Dutch oven, heat olive oil and sear beef in batches until browned on all sides. Set aside.
Cook Bacon & Veggies:
In the same pot, cook chopped bacon until crispy. Add onion and carrots and sauté until softened, about 5 minutes. Add garlic and tomato paste; cook for 1–2 minutes.
Deglaze and Braise:
Sprinkle flour over the mixture and stir well. Gradually add wine while scraping the bottom of the pot. Stir in beef broth, thyme, bay leaf, and return beef to the pot. Bring to a simmer.
Bake in Oven:
Cover and transfer to a preheated 325°F (160°C) oven. Bake for 2½ to 3 hours, or until beef is fork-tender.
Cook Mushrooms and Onions:
While stew bakes, sauté mushrooms and pearl onions in butter over medium heat until golden and tender. Set aside.
Finish the Stew:
Once stew is done, remove bay leaf. Stir in cooked mushrooms and onions. Simmer uncovered on the stove for 10–15 minutes to slightly thicken if needed.
Serve:
Spoon stew over mashed potatoes, buttered noodles, or crusty bread. Garnish with parsley.