Heat 2 tbsp. avocado oil and 1 tsp. toasted sesame oil over medium-high heat. Add the shallots and red bell pepper and saute for about 3 minutes.
Toss in the garlic and the ground chicken and using the back of a spoon, break up the meat. Season with salt and pepper and cook until cooked through, about 7 minutes.
Meanwhile, in a small bowl whisk together the coconut aminos, rice vinegar, crushed red pepper, grated ginger and arrowroot.
Pour sauce into the meat mixture with the diced water chestnuts, mushrooms and green onions. Continue to cook for 3-5 more minutes, or until the mushrooms are cooked through and tender.