Combine steak and 2 tablespoons flour in a large zip-top plastic bag. Seal; toss to coat. Remove steak from bag. Place a large Dutch oven coated with cooking spray over medium-high heat until hot. Add steak and onion; cook 2 minutes on all sides or until steak is browned. Add 1/2 cup tomato sauce, water, and next 6 ingredients (water through bay leaf); bring to a boil. Cover, reduce heat, and simmer 45 minutes or until steak is tender, stirring occasionally. Discard bay leaf.
Combine 1/2 cup tomato sauce and 1/3 cup flour in a bowl, and stir well. Add tomato sauce mixture, peas, potatoes, and carrots to steak mixture in pan; bring to a boil. Cover, reduce heat, and simmer 5 minutes or until thick, stirring occasionally. Serve over Soft Polenta.