Add the bacon to a large pot and turn the heat to medium. Cook, stirring often, until the bacon begins to brown and render off fat. Add the diced mushrooms, carrots, and onions and cook, stirring often, until well-browned and softened, 10-12 minutes. Season lightly with salt and pepper. Add the garlic and cook for 45 seconds until fragrant.
Add the tomato paste and stir to coat the vegetables for about 2 minutes or until the tomato pasta begins to deepen in color.
Slowly whisk in the stock, scraping up any browned bits stuck to the bottom.
Season the sauce with salt, pepper, crushed red pepper, and smoked paprika. Stir in the sugar and reduce heat. Cover and simmer for 30 minutes to allow the flavors to meld. After 30 minutes, taste and season to your preferences.