Cook the chopped bacon in a large pot over medium heat until crisp. Remove the bacon with a slotted spoon and set it aside, leaving the fat in the pot.
Add the ground beef to the pot and cook until browned, breaking it up with a spoon. Drain excess fat if needed.
Stir in the onion, garlic, and mushrooms. Cook for 5 minutes until the vegetables soften.
Add the carrots, potatoes, beef broth, smoked paprika, thyme, salt, and pepper. Stir to combine.
Bring the mixture to a boil, then reduce the heat and simmer for 25 minutes until the potatoes and carrots are tender.
Stir the cooked bacon back into the stew just before serving.