Place bacon in a saucepan, cover with water, and simmer for 10 minutes. This removes excess salt and smoke. Drain and pat dry thoroughly.

Heat a heavy Dutch oven over medium heat with a little olive oil. Brown bacon until lightly crisp. Remove and set aside. Leave the fat in the pot.

Dry the beef completely. Moisture prevents browning. Brown in batches without crowding, turning to develop a deep crust. Remove each batch as it finishes.

In the same pot, sauté the sliced onion and carrot until softened and lightly browned. This builds the aromatic base.

Return beef and bacon to the pot. Season with salt and pepper. Sprinkle flour evenly over the meat and toss gently to coat.

Place the uncovered pot in a 450°F oven for 10 minutes. Stir once and return for another 5 minutes. This sets the flour and deepens flavor.

Lower oven to 325°F. Remove pot and add carrots, onions, wine, beef stock, tomato paste, garlic, thyme, and bay leaves. Liquid should barely cover the meat. Cover and return to oven for 2½–3 hours until the beef is tender and nearly falling apart.

About 30 minutes before the stew is done, sauté pearl onions in oil and butter with a splash of broth and water. Simmer gently until translucent and tender. Remove. In the same pan, add more butter and sauté mushrooms until browned and soft.

Add onions and mushrooms to the stew. Simmer uncovered on the stove for 10–15 minutes to thicken naturally. Remove bay leaves and thyme stems.

Serve over mashed potatoes. Garnish with fresh parsley.