Place the potatoes and garlic in a large pot. Cover them with water and season the water generously with salt. Bring to a boil and cook until the potatoes are fork-tender, about 8 minutes. Drain the potatoes and discard the garlic. Let the potatoes cool.
Put the bacon and 1 tablespoon olive oil in a large cast-iron skillet. Turn the heat to medium and cook, stirring occasionally, until crisp, about 5 minutes. Add the onions, some salt and crushed red pepper and saute until soft, 2 to 3 minutes. Add the bell pepper and continue to cook until beginning to soften, 3 to 4 minutes more. Add the potatoes and cook until crispy, 4 to 5 minutes, adding more olive oil if needed. Season with the seafood seasoning and sprinkle with the chives.