Cook bacon in a large pot until crisp, then remove and set aside, leaving some of the drippings in the pot.

Add the chicken broth to the pot and bring it to a gentle simmer.

Stir in the heavy cream and softened cream cheese, allowing the cream cheese to melt and blend smoothly into the broth.

Add the shredded chicken, garlic powder, onion powder, dill, parsley, salt, and pepper.

Simmer the soup on low heat, stirring occasionally, until everything is well combined and heated through.

Add the shredded cheddar cheese and continue stirring until melted and creamy.

Top the soup with the cooked bacon before serving.