In 6-8 quart sauce pan or Dutch oven, cook the bacon uncovered over medium-low heat until browned, 10 to 15 minutes. With a slotted spoon, transfer the bacon to a paper-towel-lined plate; set aside. Reserve bacon fat.
Add the oil to the bacon grease, and slowly caramelize the pearl onions and mushrooms until they smell nutty. Add to the bacon and set aside.
Season cubed beef with salt and pepper. In a large bowl, dredge beef in flour, shaking off excess. Raise heat to medium, add more oil and butter if needed. Brown beef in oil on all sides, without crowding, about 10 minutes per batch. Transfer each batch to a plate.
Add the carrots and onion to pan, cook until slightly softened, about 5 minutes. Add the garlic for the last minute or so.
Deglaze the pan with 1 cup beef stock.
Add the wine, remaining beef stock, meat (with juices), thyme, sage, and bay leaf. Stir in the leftover flour & tomato paste. Braise in the oven for 2-3 hours at 300o.
Add the reserved pearl onions, bacon and mushrooms, stir through and cook another 30 minutes. Skim fat off surface of stew and discard.
Add 1 Tbsp butter, blend when melted, and garnish with parsley.
Serve over mashed new red potatoes