Pat beef dry and season generously with salt and pepper.
Heat 2 tablespoons oil in a Dutch oven over medium-high heat. Brown beef in batches (don't crowd the pot), about 3-4 minutes per side. Set aside. If you see black starting to accumulate on the bottom of the pot, the heat is too high. Some brown down there is okay, but black is no good. Feel free to use some wine to deglaze every once in a while to stop residue from becoming black too.
Add remaining 1 tablespoon oil. Sauté onions until softened, about 5 minutes.
Add garlic and cook 1 minute until fragrant.
Stir in tomato paste and cook 1 minute.
Sprinkle flour over vegetables and stir to coat. Cook 1 minute.
Pour in wine, scraping up brown bits from the bottom. Bring to a simmer.
Add beef broth, water, balsamic vinegar, thyme, and bay leaves. Return beef to pot.
Bring to a boil, then cover and transfer to oven. Cook 1.5 hours.
Add carrots and potatoes. Cover and cook another 1 hour, until beef is fork-tender and vegetables are cooked through.
Remove bay leaves. Taste and adjust seasoning.
Garnish with fresh parsley and serve.
Notes
Use beef chuck with good marbling for the most tender, flavorful stew
Even better when made a day or two ahead
Freezes beautifully for up to 3 months
Serve with crusty bread or popovers to soak up the sauce