Heat butter and olive oil in a large pot over medium heat. Add diced onion and sauté until softened.
Stir in minced garlic and cook until fragrant.
Pour in chicken broth, then add onion powder, garlic powder, dill, parsley, paprika, pepper, and salt. Bring to a gentle simmer.
Reduce heat and add cubed cream cheese. Stir until fully melted and smooth.
Add shredded chicken, heavy cream, and crumbled bacon. Let simmer for 10–12 minutes to thicken.
Stir in shredded cheddar and chopped spinach until cheese melts and spinach wilts.
Taste and adjust seasoning. Add xanthan gum in tiny amounts if a thicker soup is desired.
Serve warm topped with sliced green onions, extra cheese, or extra crispy bacon.