Prepare a large pot full of cold water, add baby potatoes to the water. Bring the pot to a boil over high heat, add ¼ cup of salt, and turn down to a gentle simmer. Cook until potatoes are fork-tender; about 12 minutes. Drain potatoes and set aside to cool. Cut potatoes in half.
Heat a 12” skillet over medium heat until hot, add 1 tbsp olive oil and swirl the pan to coat it evenly. Add the cut sausages. Cook, occasionally stirring until sausages are lightly browned. With tongs, transfer links to a bowl and set aside—return pan to medium heat.
Add 1 tbsp of olive oil to the pan. Add potatoes cut side down. Allow them to cook until browned, about 4-5 minutes. Add ¼ tsp kosher salt to them. Transfer potatoes to the same bowl as sausages. Return pan to medium-high heat.
Add the remaining 1 tbsp of olive oil to the pan. Add garlic and cook on low for 1 minute. Add the cut onions and peppers. Season with remaining salt and pepper. Cook, occasionally stirring until lightly caramelized; about 5-7 minutes. Add ¼ cup of water to deglaze, making sure to scrape the pan of all the tasty caramelized bits.
Return the sausages and potatoes to the pan and stir to combine. Cook until potatoes and sausages are heated through, about 1-2 minutes.
Add chopped parsley and stir in to combine. Serve immediately.