Preheat oven to 325°F. Pat beef chunks completely dry and season generously with salt and pepper on all sides.

In a large Dutch oven, cook bacon over medium heat until crispy and golden, about 6-8 minutes. Remove bacon and set aside, leaving the fat in the pot.

Increase heat to medium-high. Working in batches to avoid overcrowding, sear beef chunks until deeply browned on all sides, about 8-10 minutes total per batch. Remove beef and set aside.

Add diced onion to the same pot and cook until softened, about 5 minutes. Add garlic and cook for 1 minute until fragrant.

Stir in tomato paste and cook for 2 minutes. Sprinkle flour over vegetables and stir constantly for 1 minute.

Slowly pour in red wine, scraping up all browned bits from bottom of pot. Add beef broth, thyme, bay leaves, and return beef and bacon to pot.

Bring to a gentle simmer, then cover and transfer to preheated oven. Braise for 1.5 hours.

Add pearl onions and mushrooms to the pot, cover, and continue braising for 45-60 minutes until beef is fork-tender.

Remove bay leaves and thyme stems. If desired, transfer to stovetop and simmer uncovered for 10-15 minutes to thicken sauce.

Taste and adjust seasoning with salt and pepper. Garnish with fresh parsley and serve immediately with crusty bread or over egg noodles.