Pat the beef stew meat dry with paper towels and season evenly with sea salt and black pepper.
Heat the olive oil in a heavy-bottomed pot or Dutch oven over medium-high heat and sear the beef until deeply browned on all sides.
Remove the beef from the pot and set aside, then add the pearl onions, sliced carrots, and halved mushrooms to the remaining fat.
Sauté the vegetables for 5-7 minutes until the onions are translucent and the mushrooms have released their moisture.
Stir in the minced garlic and tomato paste, cooking for 1 minute until the paste turns a deep brick red.
Pour in the dry red wine to deglaze the pot, using a wooden spoon to scrape up all the flavorful browned bits from the bottom.
Return the beef to the pot and add the beef bone broth, thyme sprigs, and bay leaf.
Bring the liquid to a boil, then reduce the heat to low, cover, and simmer for 90 minutes until the beef is fork-tender and the sauce is thick.