Cook the bacon in a large Dutch oven over medium heat until fully cooked and crispy to your liking. Remove from heat and transfer to a paper towel-lined plate. Set aside.
Pat chicken dry with paper towels. Season with salt and pepper.
Increase the heat to medium-high heat. Add the oil to the pot. Once the oil is hot and working in batches, add the chicken skin side down, and brown on all sides, about 3-5 minutes per side. Once all sides are browned, transfer to a plate and continue with the next batch, until you've browned all of the chicken.
Reduce heat to medium. Add the onions and carrots. Stir and cook for about 2-3 minutes, just until the onions are soft and fragrant.
Add the garlic, tomato paste, bay leaves, thyme, and flour. Gently stir together and cook for about 1-2 minutes, until you no longer see white dry flour.
Slowly pour in a little bit of the chicken broth and scrape the brown bits at the bottom of the pan with a wooden spoon. Then pour in the rest of the chicken broth and the red wine. Stir, and bring the liquid to a gentle simmer/low boil.
Reduce heat to low-medium, cover, and allow the chicken to cook until tender, about 30-35 minutes.
Meanwhile, in a separate skillet over medium heat, add the butter. Once the butter is melted, cook the mushrooms and pearl onions for about 10-12 minutes. Turn off the heat.
Uncover the pot with the chicken.
Add the bacon, mushrooms, and onions to the large pot, stir, and cook uncovered on low-medium for about 10 minutes. Then chicken should be fully cooked (a thermometer will read 165°F when chicken is done).
Carefully remove the thyme sprigs and bay leaves, and discard.
Garnish with parsley just before serving.
Notes
Makes approximately 4-6 servings. Storage: Allow to cool, then store in an airtight container in the refrigerator for up to 3-4 days.