Preheat the oven to 350°F.

In a large Dutch oven, cook the bacon over medium heat until crisp. Remove bacon and set aside, leaving the fat in the pot.

Season the beef with salt and pepper. In batches, brown the beef on all sides in the bacon fat, then set aside with the bacon.

In the same pot, add the onion and carrots. Cook until onions are translucent. Add garlic and cook for 1 minute.

Stir in the tomato paste and flour, cook for 2 minutes. Slowly add the wine, scraping the bottom of the pot to loosen browned bits.

Add the beef stock, bay leaves, thyme, beef, and bacon back to the pot. Bring to a simmer.

Cover and transfer to the oven. Cook for 2 hours.

Add the pearl onions and mushrooms to the pot. Cook for another hour, or until the beef is tender.

Remove from oven, discard bay leaves and thyme sprigs. Adjust seasoning with salt and pepper.

Serve hot, garnished with fresh parsley if desired.