Pat the beef cubes dry with paper towels and season generously with salt and pepper. Heat 2 tablespoons olive oil in a large Dutch oven over medium-high heat.
Working in batches, brown the beef on all sides, about 8-10 minutes total. Remove beef and set aside.
Add remaining tablespoon of oil to the pot. Sauté onion until softened, about 5 minutes. Add garlic and tomato paste, cooking for 1 minute until fragrant.
Sprinkle flour over the onion mixture and stir to coat. Gradually add beef broth and water, scraping up any browned bits from the bottom of the pot.
Return beef to the pot along with bay leaves and thyme. Bring to a boil, then reduce heat to low, cover, and simmer for 1 hour.
Add carrots, parsnips, turnips, and potatoes to the pot. Cover and continue simmering for 45-60 minutes until vegetables and beef are tender.
Remove bay leaves, adjust seasoning with additional salt and pepper if needed, and garnish with fresh parsley before serving.