Finely dice the yellow onion and mince the garlic cloves. Chop the beef bacon into small, bite-sized pieces if not already done. Having everything prepped before you turn on the stove keeps the process smooth.

In a large, deep skillet or Dutch oven, cook the chopped beef bacon over medium heat until crispy, about 5 to 7 minutes. Transfer to a paper towel-lined plate, leaving 1 to 2 tablespoons of rendered fat in the skillet. Do not wipe it out.

Add the diced onion to the skillet with the reserved fat. Saute over medium heat for 3 to 5 minutes until softened and translucent. Add the minced garlic and cook for 1 more minute until fragrant.

Add the diced chicken to the skillet. Cook, stirring occasionally, until browned on all sides and cooked through, about 6 to 8 minutes. The chicken is done when it reaches an internal temperature of 165F and shows no pink in the center. Season lightly with salt and black pepper.

Reduce heat to low. Add the softened cream cheese, chicken broth, milk, and ranch seasoning packet. Stir continuously until the cream cheese is fully melted and the sauce is smooth. If the cream cheese is still cold, give it an extra minute and keep stirring.

Gently stir in the uncooked gnocchi, making sure every piece is fully submerged in the sauce. Increase heat to medium-low and bring to a gentle simmer. Cook for 5 to 7 minutes, stirring occasionally, until the gnocchi is tender. Taste one to check for doneness.

Stir in 1 cup of the shredded cheese, reserving the remaining half cup for topping. Keep stirring until fully melted and the sauce looks glossy.

Stir in the crispy beef bacon bits, reserving a small handful for garnish. Taste and adjust seasoning as needed. Remove from heat and let sit for 1 to 2 minutes. The starch from the gnocchi will continue to set the sauce as it rests.

Ladle into bowls, top with reserved shredded cheese, reserved bacon bits, and fresh parsley or chives. Serve hot.