In a heavy bottomed pan, cook the bacon until crispy. Remove, chop, and set aside. Drain the pan, reserving a few tablespoons of the bacon grease
Add some of the bacon grease back to the pan and sauté the diced onion, celery and sliced carrots over medium heat until softened and fragrant, about 5–6 minutes.
Add the bacon and vegetables to the crock pot along with the chicken broth, salt, pepper, garlic powder, thyme, and red chili flakes (if using).
Set the crock pot to low for at least 4 hours, 6 is preferred
When there's about an hour left, remove a quarter to half the broth and set aside
Set a heavy bottom pan over medium low heat, and start by adding the velveta and heavy cream. Continue stirring, until the velveta is completely melted. Slowly add the shredded cheddar cheese, a quarter cup at a time, making sure it is melted before adding more
Slowly add the broth you removed to the cheese sauce. Make sure it is incorporated before adding more. Doing this too fast can break the sauce. Once the cheese sauce has become more of a soup consistency, it can be added back to the crock pot with any remaining broth from the previous step
Add the Gnocchi: Stir in gnocchi and cook for 25-30 minutes, or until the gnocchi become tender and float to the surface.