Preheat your oven to 400°F. While the oven heats, cook the bacon pieces in a large skillet over medium-high heat for 18-20 minutes until crispy, stirring occasionally. Once done, transfer the bacon to a paper towel-lined plate, reserving about 2-3 tablespoons of the rendered fat in the pan. While the bacon cooks, finely dice your onion and bell pepper into 1/4-inch pieces so they're ready to go into the pan.
Add the diced onion and bell pepper to the bacon fat remaining in the skillet and sauté over medium heat for 1-2 minutes until just beginning to soften. Immediately add the smoked paprika, chili powder, garlic powder, salt, and black pepper, stirring constantly for about 1 minute to bloom the spices and release their flavors. This quick toasting step is crucial—it transforms raw spice powder into something much more complex and delicious.
Pour in the BBQ sauce, ketchup, yellow mustard, apple cider vinegar, brown sugar, and Worcestershire sauce, stirring well to combine with the aromatic spice mixture. Drain the baked beans and add them to the skillet along with most of the crispy bacon pieces (reserving a handful for topping). Stir everything together until the beans are well coated and heated through, about 1-2 minutes. I like to taste the mixture at this point and add hot sauce gradually—start with a teaspoon and adjust to your preference for heat.
Increase the heat to medium-high and bring the bean mixture to a gentle boil, stirring occasionally, for about 2-3 minutes. Remove from heat and add hot sauce to taste—I recommend starting with just 1/2 teaspoon and stirring it in thoroughly before adding more, as the heat can intensify during baking.
Transfer the bean mixture to a 9x13 inch baking dish (or similar large dish for serving a crowd). Scatter the reserved crispy bacon pieces over the top as garnish and flavor enhancer. Bake uncovered at 400°F for 40-45 minutes until the beans are bubbling around the edges and the flavors have melded together beautifully. The longer baking time allows the acid from the vinegar and mustard to mellow while the spices deepen.