Brown Italian sausage, ground beef, onion, and garlic in a Dutch oven until well caramelized.
Stir in crushed tomatoes, tomato sauce, tomato paste, and water.
Add sugar, parsley, basil, 1 teaspoon salt, Italian seasoning, fennel seeds, and pepper.
Cover and cook for 1 ½ hours, stirring occasionally.
Cook in salted water for 8–10 minutes, drain, rinse.
Combine ricotta, egg, parsley, and remaining salt.
Spread 1 ½ cups sauce in a 9×13 dish, layer noodles, ricotta mixture, mozzarella, sauce, and Parmesan.
Build the second layer and finish with remaining cheeses.
Cover with foil and bake at 375°F for 25 minutes.
Remove foil and bake an additional 25 minutes.
Let stand 15 minutes before cutting.
