Pre-heat oven to 160°C (140°C fan-forced).
Heat 1 tbsp of the oil in a large heavy based, oven-proof pot. Add onions and pancetta, cooking until golden. Set aside.
Toss the beef in seasoned flour. Add another tbsp of oil to pot and cook the beef in batches until browned all over. Remove and set aside.
Add remaining oil to pot and cook the onion and garlic for 2-3 minutes until tender. Return beef to the pot with the wine, stock, carrot and herbs. Bring to the boil, place lid on pot and place into the oven for 1 hour.
Add the shallots and bacon to the pot with the mushrooms. Replace lid, return to the oven and cook a further hour until beef is tender. Season to taste. Serve with a creamy mash or boiled potatoes and green beans.