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Place the potatoes in a large saucepan and cover them with 2 inches of water. Bring to a boil, then reduce the heat to a low boil and cook for 15-25 minutes (depending on their size), until the potatoes are easy to pierce with a fork. Drain and set aside, uncovered, to cool for 30 minutes.*
Heat ½ Tbsp olive oil in a large skillet over medium heat. Add the bacon and sauté until crisp and browned, about 8-10 minutes, stirring occasionally. Remove the bacon with a slotted spoon and transfer it to a plate. Reserve 3-4 Tbsp of bacon grease in the pan.
Into the hot bacon grease, add the red onion and cook, stirring, until softened, about 3-4 minutes. Add the minced garlic and sauté for another 30 seconds.
Add the vinegar, ¼ cup of chicken stock, mustard, and sugar to taste. Start with 1 Tbsp of sugar and add more as needed to balance the vinegar. Season with salt and pepper. Continue stirring for about 2 minutes, or until the mixture has reduced slightly.
While the potatoes are still warm, cut them into bite-size chunks. You can peel the potatoes, but I prefer to keep the skins on. Place the potatoes in a large mixing bowl and top with the dressing. Add the bacon and herbs, and toss to combine. Garnish with more parsley or dill if desired.