Prep the vegetables. Slice the bell peppers and onion into thin strips. Mince the garlic. Drain the diced tomatoes well to avoid excess liquid.
Make the spice mix. In a small bowl, combine chili powder, cumin, smoked paprika, oregano, garlic powder, onion powder, salt, pepper, and cayenne (if using).
Layer the slow cooker. Add the sliced onions and half the peppers to the bottom of the slow cooker.
Drizzle with olive oil. Place the chicken on top, then sprinkle the spice mix evenly over the chicken.
Add tomatoes and garlic. Scatter the minced garlic over the chicken and add the drained diced tomatoes. Top with the remaining peppers.
Cook low and slow. Cover and cook on Low for 4–5 hours or on High for 2.5–3.5 hours, until the chicken is tender and easily shreds.
Shred and season. Remove the chicken to a cutting board and shred with two forks.
Return it to the slow cooker and stir to coat with the juices and vegetables. Squeeze in the lime juice and adjust salt or heat if needed.
Warm the tortillas. Heat tortillas in a dry skillet for 20–30 seconds per side or wrap in foil and warm in a 300°F oven for 8–10 minutes.
Serve. Spoon the chicken and peppers into tortillas. Top with cilantro, avocado, salsa, cheese, and a dollop of sour cream or yogurt.
Add lime wedges on the side for extra brightness.