Pat the chicken pieces dry with a paper towel to remove any excess moisture. Season the chicken all over with 2 teaspoons of Goya all-purpose seasoning or kosher salt and ½ teaspoon of ground black pepper.
Place the flour on a large shallow dish, and season the flour with 1 teaspoon of Goya all-purpose seasoning or kosher salt and ½ teaspoon of black pepper. Coat each chicken piece in the seasoned flour, ensuring even coverage, and shake off any excess flour.
In a large Dutch oven or a deep, large skillet, heat 2 tablespoons of oil over medium-high heat. Brown half of the chicken until golden and crispy, about 5 to 7 minutes. Do not overcrowd the skillet.
Flip the chicken and brown the other side for an additional 1 to 2 minutes. Use tongs to transfer the browned chicken to a large plate and repeat the process with the remaining chicken. Remove all but about 2 tablespoons of the fat.
Return the pot to the stove and reduce the heat to medium-low. Add the bacon and sauté for 5 to 7 minutes. Incorporate the onions, cooking occasionally until they soften and begin to brown, about 5 to 7 minutes. Stir in the garlic and continue to cook for about 1 minute until it becomes fragrant, being careful not to let it brown.
Add the mushrooms and bell peppers, increasing the heat to medium. Cook for 5 minutes, occasionally stirring until the vegetables start to soften. Stir in the tomato paste and cook for 2 minutes.
Pour in the wine and bring it to a boil over high heat. Stir to scrape the browned bits from the bottom of the pan. Add the wine and reduce it by half, about 3 minutes.
Return the chicken, along with any collected juices, to the pot and add the water, crushed tomatoes, thyme, sage, rosemary, oregano, sugar, olives, capers, and 1 tablespoon of Knorr chicken bouillon. Bring the mixture to a boil, then reduce the heat to medium-low.
Let it simmer, uncovered, for about 1 hour or until chicken meat comes off the bone easily and the sauce thickens. Taste and adjust the seasoning if necessary. Gently stir in the lemon zest and basil. Cover and let it rest for 10 minutes to gently infuse all the flavors.