Heat 1 tablespoon of olive oil in a 5 1/2 - 6 quart Dutch oven or pot.
In batches, add chicken thighs and brown on both sides. About 3-4 minutes on each side. Place the cooked chicken in a bowl and set aside.
In the same pot, heat another tablespoon of olive oil and add in onion and cook until soft and translucent. Add the garlic and cook for another 30 seconds or until fragrant.
Add in the peppers and mushrooms and cook until softened, about 3-4 minutes. Stir in the thyme and cook for another 30 seconds.
Pour in the wine and let it cook for 2-3 minutes or until reduced. While the wine is simmering, scrape the brown bits from the bottom of the pot.
Add the tomatoes, tomato sauce, and bay leaves. Give the sauce a few stirs and then return the chicken to the sauce.
Bring to a boil and then immediately reduce the heat to a simmer. Let the sauce simmer on low for an hour, stirring occasionally. The chicken thighs should be tender, moist, and falling apart. Break the chicken into chunks. The sauce should be a deep red color. Remove the bay leaves.
Season with salt and pepper, then serve hot over pasta, polenta, or your favorite side. If the sauce becomes too thick add in a splash of chicken broth and stir.
Serve over your favorite pasta, with shredded parmesan cheese