Pat chicken dry with paper towels. Season with garlic powder, smoked paprika, 1/2 tsp salt, and 1/4 tsp pepper.
Heat 1 tbsp olive oil and 1 tbsp butter in a 12-inch skillet over medium-high heat. Add chicken cubes in a single layer and sear undisturbed for 3-4 minutes until golden; flip and cook 2 minutes more. Transfer chicken to a plate.
Add remaining 1 tbsp olive oil to skillet. Add uncooked gnocchi and toast gently for 2 minutes. Add minced garlic and cook for 30 seconds until fragrant.
Pour in chicken bone broth, scraping browned bits from pan bottom. Cover and simmer over medium-low heat for 3 minutes until gnocchi are tender.
Uncover, add heavy cream and Italian seasoning. Simmer gently for 2 minutes to thicken slightly.
Remove from heat, stir in freshly grated Parmesan until melted and smooth. Return seared chicken and resting juices to skillet.
Add baby spinach, toss gently for 1 minute until wilted. Garnish with chopped parsley and cracked pepper, and serve warm immediately!