Place bacon in a large, deep skillet. Cook over medium-high heat until evenly brown. Remove from pan, crumble, and set aside. Toss lamb, salt, pepper, and flour in a mixing bowl until evenly coated. Place lamb in pan with bacon grease and brown. Once browned, place the lamb in a stock pot. Now add the garlic and chopped onion to the pan and saute in the fat until the onion begins to become golden. Deglaze with the water and then add the mixture to the stock pot along with the bacon, beef stock, and sugar. Cover and simmer for 1 1/2 hours. Then add carrots, onions, potatoes, thyme, bay leaves, and wine to the pot. Reduce heat and simmer covered for 20 minutes or until the vegetables are tender.