Heat 1/2 tablespoon oil in a heavy-bottom skillet set on medium heat.
Spread flour onto a shallow plate and dredge chicken on both sides. Place chicken in skillet and cook on both sides until golden brown, about 4 to 6 minutes per side. Remove from skillet and set aside.
Add remaining oil, mushrooms, bell pepper, onion and garlic to skillet. Sauté until soft, about 10 minutes.
Add olives, sauce and red pepper flakes. Add chicken back to pan and cover in sauce. Reduce heat to a simmer, and let cook uncovered for 10 to 20 minutes.
Meanwhile, cook spaghetti according to package instructions.
Stir basil, salt and pepper into chicken/sauce mixture. Serve over spaghetti.
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