In a large pot or Dutch oven, heat olive oil over medium heat. Add the diced onion and cook until soft, about 3–4 minutes. Stir in garlic and cook for another 30 seconds until fragrant.
Pour in the chicken broth and bring to a simmer. Add the shredded chicken and ranch seasoning mix. Stir well to combine.
Reduce heat to low. Add cubed cream cheese and stir until melted and smooth. Then stir in the shredded cheddar cheese until fully melted and incorporated.
Pour in the heavy cream and add the crumbled bacon. Let the soup simmer for 5–10 more minutes, stirring occasionally, until everything is creamy and heated through. Season with salt and pepper to taste.
Ladle soup into bowls and garnish with extra cheddar, green onions, or parsley if desired. Serve hot with crusty bread or crackers.