Peel and slice the onion and carrot into medium-thick slices and slice the bacon. Pat dry the chunks of beef with kitchen towel (this helps it brown better).
Preheat the oven to 450F/230C.
Warm a Dutch oven over a medium heat and cook the bacon for a couple minutes until it is just starting to brown. Add a little oil if needed, but there should be enough fat rendered from the bacon. Remove the bacon from the pan and set aside.
Add the oil to the pan and brown the beef on all sides in batches until it has a good sear. Remove from pan and set aside with the bacon.
Next add the onion and carrot and cook until the onions are just soft, stirring regularly. If there is excess fat, remove it, or if they appear to be browning too quickly, add a little more oil.
Add the beef and bacon back to the pan, add the salt and pepper and sprinkle over the flour. Stir to coat the beef then place pan in the oven, uncovered, for 4 minutes. Remove pot from oven, stir everything then put back in for another 4 minutes.
Remove pan from oven and reduce the heat to 325F/160C. Crush the garlic and add to the pan, stir to cook a little in the pan's heat.
Add the red wine, beef stock and tomato paste and stir gently. The liquid should be just about over the meat and vegetables. Add the bay leaves and thyme, cover the pan and put in the oven for 3-4 hours.