In a large pot or pan, cut bacon into ½ inch pieces, brown bacon until crisp, 6-8 minutes. Remove bacon from the pan, place on a paper towel lined plate, set aside. Pour excess grease from the pan.
In the same pan heat 2 tablespoons of vegetable oil over medium-high heat. Brown chicken on each side until lightly browned, 2-3 minutes per side. Remove chicken from the pan, set aside, chicken will not be fully cooked.
Reduce heat to medium, add sliced mushrooms, cooking until lightly browned, stirring regularly, 6-8 minutes. Add the pearl onions, cook for 2-3 minutes.
Add the garlic and onions, cook until fragrant, 1 minute.
Slowly add the wine and broth, scraping up any cooked-on bits from the bottom of the pan.
Return the chicken and any accumulated juices from the plate to the pan, add the carrots, parsley, thyme, and bay leaf. Bring to a boil over high heat, cover, and reduce heat to a low simmer. Cook for 35 minutes, turning chicken halfway through cooking if not completely submerged in the cooking liquid.
While the chicken cooks, make a beurre manié, by mixing the flour and softened butter together into a paste and no streaks of flour remain, set aside.
After the chicken is done thicken the sauce. Remove the chicken from the pan, add the prepared butter and flour paste, stirring until incorporated and mixture has thickened.
Add half of the bacon to the pan, stirring to incorporate, return chicken to the pan. Garnish with additional minced parsley and remaining bacon.
Serve warm with buttered egg noodles or mashed potatoes.