Whisk the Sauce: In a small bowl, combine the chicken broth, tamari soy sauce, dry sherry, honey, sesame oil, rice vinegar, and arrowroot powder. Stir until the mixture is smooth and set it aside.
Toast the Cashews: Heat a small pan over medium-low heat and add the cashews. Toast them for about 4-5 minutes, stirring frequently, until they turn golden and smell fragrant. Set the toasted cashews aside.
Cook the Chicken: In a large skillet or wok, heat 1 tablespoon of avocado oil over medium-high heat. Season the chicken pieces with kosher salt and black pepper. Add the chicken to the skillet in an even layer, cooking for 4-5 minutes while stirring occasionally, until the pieces are lightly browned. Transfer the cooked chicken to a plate and set aside.
Cook the Vegetables: Return the skillet to medium-high heat and pour in the remaining tablespoon of avocado oil. Add the sugar snap peas, yellow bell pepper, and the white parts of the green onions. Stir-fry for about 3-4 minutes, or until the vegetables are crisp-tender.
Combine and Finish the Dish: Add the chicken back to the skillet along with the minced garlic and grated ginger. Stir and cook for 30 seconds, allowing the aromatics to release their flavor. Quickly pour in the prepared sauce, stirring it into the mixture as it thickens, about 1-2 minutes. Toss in the toasted cashews and the green parts of the onions. Stir everything together and remove from the heat. Sprinkle sesame seeds over the top and serve warm.