Preheat the oven to 350F (175C).
In a mixing bowl, season the meat with salt and freshly ground black pepper, then set aside.
Heat a Dutch oven over a medium-high heat, add the bacon, and cook until golden brown and crispy. Remove from the Dutch oven onto a paper towel.
To the same Dutch oven, add olive oil if needed and brown the meat in several batches until golden brown on both sides. Remove from the oven onto a plate and set aside.
Add the olive oil, if needed. Then add the yellow onions and carrots. Season with salt and black pepper, then cook until the onions are golden. Next add the garlic, pearl onions, thyme, and tomato paste and cook for another 2-3 minutes while stirring occasionally. Add the cognac or brandy to deglaze and cook for 1 minute or until the liquids are almost evaporated.
Return the beef and bacon to the Dutch oven and mix with the vegetables. Add the wine and the beef broth, stir well, and bring to a simmer. Cover with the lid and put into the oven for 2 hours or until the beef is fork-tender.
Right before the beef is done, prepare the mushrooms. Heat the olive oil and butter on a skillet over a medium heat and add the mushrooms. Season with salt and pepper to taste and cook until softened and golden brown. Remove from the heat and set aside.
When the beef is done, discard the bay leaves and drain the sauce into a large bowl using a sieve. Return the sauce into the Dutch oven and place the meat (with vegetables) into the bowl or onto a large plate or a dish you’re going to use for serving.
Bring the sauce to a light simmer and remove the excess fat, if it’s appeared on the surface, with a spoon. Adjust the seasoning if needed. Simmer for 10-15 minutes or until the sauce has thickened to your taste. Alternatively, add xanthan gum to make the sauce thicker.
Return the meat with vegetables into the Dutch oven or transfer everything (the sauce and the meat and veggies) into a large casserole pan or another deep serving dish. The add mushrooms, pour the sauce on top, garnish everything with freshly chopped parsley, and serve!