Pat the beef dry and season it with salt and pepper. Melt 1 tablespoon of butter in a large pot over medium-high heat, then brown the beef in batches until all sides are seared. Remove the beef and set it aside.
Lower the heat to medium and add the remaining tablespoon of butter. Cook the onion and carrots for 5 minutes until the onion softens. Stir in the garlic and cook for 1 minute more.
Sprinkle the flour over the vegetables and stir for 2 minutes to form a roux. Slowly whisk in the beef broth until the mixture is smooth and begins to thicken.
Return the beef to the pot along with the smoked paprika. Bring everything to a simmer, cover, and cook for 1 hour, stirring occasionally.
Add the red bell pepper strips and continue simmering uncovered for 20 minutes until the peppers are tender and the stew reaches a creamy consistency.
Taste and adjust salt if needed. Ladle into bowls and sprinkle with fresh parsley before serving.