Heat the oven to 325 degrees Fahrenheit. Toss the lamb pieces with the flour, salt, and pepper until lightly coated.
Warm the oil in a Dutch oven over medium heat. Add the lamb and cook until browned on all sides, about 6 minutes total. Remove the lamb to a plate.
Add the onions to the same pot and cook until softened, about 4 minutes. Stir in the carrots and potatoes.
Return the lamb to the pot. Add the lamb stock, bay leaves, and thyme. Bring the mixture to a simmer.
Cover the Dutch oven and transfer it to the oven. Bake for 2 hours until the lamb is fork-tender.
Remove the bay leaves. Stir in the parsley. Serve the stew hot with slices of crusty brown bread on the side.