Prepare the ingredients. Peel and cube the butternut squash, dice the onion, mince the garlic, and remove the sausage from its casings.
Brown the sausage. Heat the olive oil in a large skillet over medium-high heat. Add the sausage and break it into small pieces. Cook for 5–7 minutes, until browned and cooked through. Transfer the sausage to a plate and set aside.
Cook the squash. Add the butternut squash to the same skillet. Cook for 6–8 minutes, stirring occasionally, until it begins to soften and develop golden-brown edges.
Add the aromatics. Stir in the onion and cook for 3–4 minutes, until softened. Add the garlic, sage, and thyme and cook for another minute, until fragrant.
Cook the gnocchi. Add the gnocchi to the skillet and cook according to the package directions. For pan-fried gnocchi, allow it to sit undisturbed for a few minutes at a time so the edges become lightly golden and crisp.
Make the sauce. Return the cooked sausage to the skillet. Pour in the heavy cream and chicken broth. Stir gently and reduce the heat to medium-low.
Simmer. Allow everything to simmer for 3–5 minutes, stirring occasionally, until the sauce begins to thicken and the squash is completely tender.
Add Parmesan. Stir in the freshly grated Parmesan until melted and incorporated into the sauce. If the sauce is too thick, add a small splash of chicken broth.
Season. Add the salt, black pepper, and red pepper flakes, if using. Taste and adjust the seasoning as needed.
Garnish and serve. Sprinkle with fresh parsley and additional Parmesan if desired. Serve immediately while the gnocchi is warm and the sauce is creamy.