Preheat the oven: Preheat your oven to 375°F and lightly grease a small baking dish or cast-iron skillet. This gives the dip a hot environment to bubble and brown evenly.

Sauté mushrooms dry: Heat the olive oil in a large skillet over medium-high heat and add the chopped mushrooms with no other ingredients yet. Cook for about 6 minutes, stirring occasionally, until the liquid they release evaporates and the pan sounds dry again.

Add butter and aromatics: Add the butter, garlic, and onion to the mushrooms and continue cooking for 4-5 minutes. Stir until the onion softens and the mushrooms turn a deep golden brown.

Cool slightly: Remove the skillet from heat and let the mushroom mixture cool for 5 minutes. This keeps the cream cheese from melting too fast when mixed in.

Mix the creamy base: In a large bowl, beat the cream cheese and sour cream together until smooth. Stir in half the parmesan, the salt, and the black pepper.

Fold in mushrooms and bacon: Add the cooled mushroom mixture, crumbled turkey bacon, and fresh thyme to the cream cheese base. Stir until everything is evenly combined.

Spread into the dish: Transfer the mixture to the prepared baking dish and spread it into an even layer with a spatula.

Add the cheese topping: Sprinkle the remaining parmesan and the mozzarella evenly over the top of the dip.

Bake until golden: Bake for 20-25 minutes, until the edges are bubbling and the cheese on top has turned golden brown in spots.

Garnish and serve: Sprinkle the chopped parsley over the hot dip and serve it with crackers or toasted bread while it's warm and the cheese is still melted.