In a Dutch oven, brown the bacon. Place strips on a paper towel-lined plate and set aside. Next, cut the beef into about 2-inch chunks. Sear the beef in the remaining bacon grease. Remove and set aside.
Preheat the oven to 350 degrees.
In the Dutch oven, sauté the carrots, onion, and garlic for 5-8 minutes. Stir in the flour and pearl onions.
Next, stir in the beef stock, red wine, tomato paste, and parsley. Bring to a simmer. Then, cover and roast in the oven for 2-3 hours. The meat should be very tender.
In a large skillet, melt 1 Tbsp. of butter. Next, sauté the garlic for 2-3 minutes, until fragrant. Then, sauté the mushrooms for 5-6 minutes.
Stir the mushrooms into the stew. Finally, garnish with chopped parsley.