Preheat oven to 375°F (190°C). Lightly grease a 9x13-inch ceramic baking casserole dish with olive oil.
Pat chicken cutlets dry with paper towels. Season both sides evenly with garlic powder, onion powder, smoked paprika, 1/2 teaspoon sea salt, and 1/4 teaspoon black pepper. Arrange cutlets in a single layer in the prepared baking dish.
In a medium mixing bowl, beat softened cream cheese, smooth cottage cheese, sour cream, minced garlic, Italian herbs, remaining salt, and black pepper until completely smooth. Fold in 1 cup of shredded mozzarella cheese.
Spread the cream cheese mixture evenly over the chicken cutlets using an offset spatula. Sprinkle the remaining 1/2 cup of mozzarella cheese on top.
In a separate bowl, toss coarsely crushed Ritz crackers with melted butter and crumbled cooked beef bacon. Scatter the buttery cracker mixture evenly across the cheese layer.
Bake uncovered for 30 to 35 minutes until the chicken reaches an internal temperature of 165°F (74°C) and the buttery cracker topping is golden-brown and bubbling at the edges.
Remove from oven and let rest for 5 minutes. Garnish with chopped fresh chives and parsley, and serve warm with your favorite sides!