Heat olive oil in a large pot over medium heat. Add chopped bacon and cook until crispy, about 5 to 7 minutes. Remove bacon and set aside, keeping drippings in the pot.
In the same pot, sauté diced onion for 3 to 4 minutes until translucent. Add minced garlic and cook for an additional minute.
Pour in chicken broth and bring to a gentle simmer. Add heavy cream and stir well. Then, add potato gnocchi and cook according to package instructions, about 2 to 3 minutes.
Reduce heat to low and stir in shredded cheddar cheese until melted. Add crispy bacon and dried thyme, seasoning with salt and pepper to taste.
Combine all ingredients well, adjusting consistency with more broth if needed. Let simmer on low heat for a few more minutes.
Ladle soup into bowls and garnish with chopped fresh parsley. Serve hot.