Pat the beef stew meat dry with paper towels and season evenly with sea salt and black pepper.
Heat the olive oil in a Dutch oven or heavy-bottomed pot over medium-high heat and sear the beef until a dark brown crust forms on all sides.
Remove the beef from the pot and set aside, then add the diced onions, sliced carrots, cubed parsnips, and quartered mushrooms to the same pot.
Sauté the vegetables for 5-7 minutes until they begin to soften and develop color.
Stir in the minced garlic and tomato paste, cooking for 1 minute until the paste darkens slightly and becomes fragrant.
Return the beef to the pot and pour in the beef bone broth, using a wooden spoon to scrape up the flavorful browned bits from the bottom.
Add the dried thyme and bay leaf, then bring the liquid to a gentle simmer.
Cover the pot with a tight-fitting lid and reduce the heat to low, simmering for 75 to 90 minutes until the beef is fork-tender and the sauce has thickened.
Remove the bay leaf before serving in a shallow bowl.