Heat 2 tablespoons of oil in a large skillet over medium-high heat. Add the bite-sized chicken pieces in a single layer and season with salt, pepper, garlic powder, and onion powder. Cook for 5-7 minutes, stirring occasionally, until the chicken is golden brown on all sides and no longer pink in the center.

Reduce heat to medium-low and add the cream cheese and chicken broth to the skillet. Stir continuously for 2-3 minutes until the cream cheese melts completely and creates a smooth, velvety sauce with no lumps remaining.

Add the gnocchi and fresh spinach to the sauce. Gently stir to coat everything, then cover the skillet with a lid. Let it simmer for 5-7 minutes until the gnocchi are tender and float to the top, and the spinach has completely wilted down.

Remove the lid and stir in the shredded cheddar cheese and bacon bits. Keep stirring for 1-2 minutes until the cheese melts into the sauce. Taste and adjust seasoning with additional salt and pepper if needed, then serve immediately while hot.