Preheat oven to 300F.
Heat the olive oil in a Dutch oven over medium-high heat.
Add the bacon and cook for about 12 minutes, stirring often, until bacon becomes browned. Remove the bacon with a slotted spoon to a large plate.
Dry the beef with paper towels (this helps the beef brown in the skillet). Sprinkle the beef with salt and pepper.
In batches, in single layers, sear the beef in the hot oil for about 4 to 5 minutes, turning and browning on all sides. Remove the seared cubes to the plate with the bacon and continue searing until all the beef is browned. Set aside.
Add the carrots and onions to the pot and cook for about 12 minutes, stirring often, until the onions have caramelized a bit. Add the garlic and cook for another minute.
Add the Cognac, stand back, and ignite with a match to burn off the alcohol (be careful!).
Place the meat and the bacon back into the pot with the juices.
Add the bottle of wine plus enough beef stock to cover the meat. Add the tomato paste, thyme, 2 tsps salt, and 1 tsp pepper. Bring to a simmer, cover the pot with a tight-fitting lid, and place in the oven for about 3 hours.
Meanwhile, sauté the mushrooms in 2 tablespoons of butter for 10 minutes until nice and browned.
Make a beurre manie by combining 2 tablespoons of the butter and the flour with a fork and then stir into the stew.
Add the onions and cooked mushrooms to the stew. Simmer the stew for 15 minutes
Serve with egg noodles, rice, or mashed potatoes...garnished with a little parsley.