Heat the olive oil in a large, deep skillet or Dutch oven over medium-high heat.
Add the chicken pieces, salt, pepper, and garlic powder to the skillet. Cook the chicken until browned on all sides and cooked through, about 5 to 7 minutes.
Sprinkle the ranch seasoning mix over the chicken and stir for 30 seconds.
Pour in the chicken broth and bring the mixture to a simmer.
Add the cubed cream cheese and stir constantly until it melts and the sauce is smooth.
Add the uncooked gnocchi to the skillet. Stir gently to combine, ensuring the gnocchi is mostly submerged.
Reduce the heat to medium-low, cover the skillet, and cook for 5 to 7 minutes, or until the gnocchi is tender and has absorbed some liquid. Stir occasionally to prevent sticking.
Remove the skillet from the heat. Stir in the Parmesan cheese until fully incorporated and the sauce thickens slightly.
If using, stir in half of the crumbled bacon.
Serve immediately, garnished with the remaining bacon and fresh parsley.
Notes
If the sauce becomes too thick while cooking the gnocchi, add a splash more chicken broth or water to reach your desired consistency.
You can substitute pre-cooked shredded chicken for fresh chicken breasts to save a few minutes of cooking time.
For a tangier flavor, use half-and-half instead of some of the chicken broth when adding the liquid.