Answer 1:It adds thickness to the liquid and seems to coat everything if you like that kind of stew.
Answer 2:
I have been making stews for over 30yrs and I have never 'dredge' beef in flour. Just cut it into cubes [or ask your butcher to do this for you], and add the meat to your casserole or saucepan or slow-cooker. If you want the stew thickened, just add some cornflour in a small cup or glass and mix with a little water [not too much or it will not thicken your dish].
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