Slice the squash and zucchini evenly. Toss with olive oil, salt, pepper, and onion. Optionally, sauté or air fry for 5–8 minutes to reduce moisture.
In a bowl, mix sour cream, shredded cheese, eggs, garlic powder, thyme, and paprika until smooth.
Fold in the prepared vegetables until evenly coated.
Combine Panko, Parmesan, and melted butter in a small bowl.
Grease a 9×9-inch baking dish. Pour in the vegetable mixture and sprinkle the breadcrumb topping evenly.
Bake at 350°F (175°C) for 25–30 minutes, until golden and bubbling.
Let the casserole rest for 5 minutes before serving.