Cook the bacon in a Dutch oven until crispy, about 8-10 minutes, and remove it to drain, keeping the fat in the pot.

Brown the beef cubes in batches in the bacon fat for about 12-15 minutes until they have a deep brown crust.

Sauté the chopped onions and carrots for about 8 minutes, enhancing the dish's flavor base.

Stir in the tomato paste and minced garlic, cooking for an additional 2 minutes before adding flour.

Deglaze the pot with red wine, bringing to a boil for a minute, then adding beef broth, bay leaves, and thyme.

Transfer the pot to a preheated oven at 325°F and braise for 2-2.5 hours until the beef is tender.

Sauté pearl onions and mushrooms in butter until golden brown during the last hour of cooking.

Fold in the sautéed onions and mushrooms, and let rest for 10 minutes before serving.