In a large resealable plastic bag, combine 3/4 cup flour, salt and pepper. Add beef, a few pieces at a time, and shake to coat. In an ovenproof Dutch oven, brown beef in oil in batches. Remove and keep warm.
In the same pan, saute onion in butter until crisp-tender. Add garlic; cook 1 minute longer. Stir in remaining flour until blended. Gradually add broth; stir in bay leaf and beef. Bring to a boil.
Cover and bake at 350° for 1 hour. Cut vegetables into 1-in. pieces; stir into stew. Cover and bake 1-1/2 to 2 hours longer or until beef and vegetables are tender. Skim fat and discard bay leaf.