Slice the chicken breasts into 1-inch strips and set aside on a plate. Slice all three bell peppers into thin strips, thinly slice the yellow onion, and mince the garlic cloves. Having everything prepped and ready before assembly makes the layering process quick and efficient, and ensures even cooking throughout the crockpot.
Pour half of the salsa (about 12 oz) into the bottom of your crockpot. Layer half of the sliced peppers, half of the onion, and all of the minced garlic over the salsa. This creates a flavor foundation and prevents the chicken from sticking directly to the bottom of the pot.
Arrange the sliced chicken breast strips evenly over the vegetable layer in the crockpot. Sprinkle the fajita seasoning packet and chili powder directly over the chicken, distributing it as evenly as possible so the seasoning doesn't clump in one spot. I like to use my fingers to work the seasoning into the chicken slightly so it adheres better and flavors the meat from all angles.
Layer the remaining half of the salsa over the seasoned chicken, then top with the remaining sliced peppers and onions. Squeeze the lime juice evenly over everything—the acid will help tenderize the chicken and brighten all the flavors as they meld together during cooking. Stir gently just once to ensure the seasonings are mixed throughout.
Cover the crockpot and cook on low for 6-8 hours or on high for 3-4 hours, until the chicken reaches an internal temperature of 165°F when checked with a meat thermometer. The long, gentle cooking allows the chicken to become tender and absorb all the flavors from the salsa, peppers, and seasonings while the vegetables become soft and release their juices into the liquid.
Using two forks or meat shredders, pull the cooked chicken apart directly in the crockpot into bite-sized shreds, mixing it throughout the salsa and vegetables. Set the crockpot to the warm setting to keep everything at a safe serving temperature without drying out. I find that shredding the chicken right in the pot helps it reabsorb some of the flavorful cooking liquid, keeping the fajitas moist and delicious.