Heat oven to 325°F (165°C). Pat beef dry and season with salt and pepper. Cook bacon in a Dutch oven over medium heat until browned, 5–7 minutes; transfer to a plate, leaving fat in the pot.

Add olive oil and brown beef in batches over medium-high heat, about 3–4 minutes per side. Transfer to the plate. Lower heat and cook diced onion and carrots 5 minutes. Add garlic and tomato paste for 1 minute, then stir in flour for 1 minute.

Pour in wine gradually, scraping browned bits from the base. Add broth, thyme, bay leaf, beef, bacon and collected juices. Bring to a gentle simmer, cover and place in the oven.

Braise 2 1/2–3 1/2 hours, checking occasionally, until beef yields easily to a fork. Add a little water if the liquid reduces too far. Timing varies with the cut; extend gently if still firm.

During the final 25 minutes, melt butter in a skillet. Brown mushrooms and pearl onions 10–12 minutes, stirring occasionally. Add to the Dutch oven and cook covered 15–20 minutes more, until onions are tender.

Remove the bay leaf. If sauce is too thin, lift out solids and simmer liquid uncovered briefly before returning them. Divide into six portions. Potatoes, noodles and bread are separate optional sides.