Heat oil in Dutch oven.
Season beef with salt and pepper.
Brown beef in batches until golden.
Remove beef and set aside.
Fry bacon until crispy in pot.
Add pearl onions and cook until soft.
Stir in garlic and mushrooms briefly.
Sprinkle flour over vegetables and stir.
Pour in red wine gradually while stirring.
Add tomato paste and beef stock.
Return beef to the pot completely.
Add bay leaves and thyme sprigs.
Cover and simmer for two hours.
Stir occasionally to prevent sticking issues.
Remove lid and reduce sauce slightly.
Check beef is fork-tender before serving.