Pat beef cubes dry and season with salt and pepper.
Chop vegetables, prepare bouquet garni, and measure out liquids.
Heat 2 tbsp olive oil in a large Dutch oven.
Sear beef cubes in batches until browned. Remove and set aside.
In the same pot, cook diced bacon until crispy. Remove and set aside, leaving rendered fat in the pot.
Add chopped onion and carrots to the pot. Cook for 5 minutes until softened.
Stir in garlic and tomato paste, cooking for 1 minute. Sprinkle with flour and stir well.
Pour in red wine, scraping up browned bits from the bottom. Simmer for 1-2 minutes.
Add beef stock, bouquet garni, seared beef, and cooked bacon.
Cover the pot and transfer to a preheated oven at 325°F (160°C). Cook for 2.5 to 3 hours, stirring occasionally.
While the stew cooks, melt butter in a skillet. Sauté pearl onions and mushrooms until golden. Set aside.
In the last 30 minutes of cooking, stir in sautéed onions and mushrooms.
Remove bouquet garni and simmer on the stovetop for 10 minutes to combine flavors.
Serve hot with mashed potatoes, buttered noodles, or crusty bread. Garnish with fresh parsley if desired.