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Preheat oven to 325°F, adjust rack to lower-middle position.
Dry beef cubes with paper towel, season with salt and pepper.
In a Dutch oven, cook bacon until crispy, remove with slotted spoon.
Brown beef in batches over medium-high heat to ensure proper browning, set aside with bacon.
Sauté carrots and onions in the same pot, add garlic, then tomato paste.
Deglaze with cognac, ignite to burn off alcohol (stand back!), add beef, bacon, and flour; cook until a dark fond forms.
Deglaze with wine, add beef broth to cover, thyme, bay leaves; bring to simmer, then bake covered for 3-4 hours until tender.
Cool, refrigerate overnight, remove fat, reheat.
Sauté onions in butter and oil until browned, add beef broth, thyme, bay leaf; simmer until onions are tender.
In same pan, sauté mushrooms in more butter and oil until lightly browned.
Combine onions and mushrooms, fold into stew.
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