
In a large Dutch oven or pot, cook the bacon over medium heat until crispy. Remove the bacon and set aside, reserving the rendered fat in the pot.
Season the chicken pieces with salt and pepper. Dredge the chicken in flour, shaking off any excess.
In the same pot, brown the chicken in batches, adding olive oil if needed. Remove the chicken and set aside.
Add the onions and carrots to the pot and cook until softened, about 5 minutes. Add the garlic and cook for another minute until fragrant.
Pour in the red wine and bring to a simmer, scraping up any browned bits from the bottom of the pot. Add the chicken broth, tomato paste, thyme, and bay leaf.
Return the chicken and bacon to the pot. Bring to a simmer, then reduce the heat to low, cover, and cook for 45 minutes to 1 hour, or until the chicken is cooked through and tender.
Add the mushrooms to the pot and cook for another 10 minutes, or until softened. Garnish with fresh parsley before serving.