In a large heavy-bottomed Dutch oven or stockpot, melt butter with olive oil over medium heat. Add diced onion, sliced celery, and shredded carrots. Cook for 5 to 6 minutes, stirring occasionally, until vegetables soften and onions turn translucent.

Stir in the minced garlic, fresh thyme, Italian seasoning, nutmeg, salt, and black pepper. Cook for 1 minute until fragrant. Sprinkle flour over the vegetables and stir constantly for 1 minute to cook out the raw flour taste.

Slowly pour in the chicken bone broth while whisking continuously to dissolve the flour roux without any lumps. Bring soup liquid to a gentle boil over medium-high heat.

Add the shredded chicken and uncooked potato gnocchi to the simmering pot. Reduce heat to medium-low and simmer uncovered for 4 to 5 minutes, until the gnocchi float to the surface and become tender and pillowy.

Reduce heat to low. Pour in the heavy whipping cream, grated Parmesan cheese, and chopped baby spinach. Stir gently for 1 to 2 minutes until the cheese is melted and the spinach leaves are perfectly wilted into the velvety broth.

Taste broth and adjust seasoning with extra kosher salt or freshly cracked black pepper if needed. Ladle hot soup into wide bowls, garnish with extra parmesan and fresh parsley, and serve immediately with warm toasted garlic bread!