Preheat oven to 375°F (190°C). Grease a 9x13 baking dish with 1 tablespoon of butter.
Pound chicken breasts to 3/4 inch thickness, pat dry, and season with 1/2 teaspoon salt, 1/4 teaspoon pepper, and garlic powder.
Heat olive oil in a large skillet over medium-high heat. Sear chicken for 3-4 minutes per side until golden brown. Transfer to a plate.
In the same skillet, sauté mushrooms for 4-5 minutes until golden. Add garlic and cook 30-45 seconds until fragrant.
Add spinach in batches and cook until wilted, 2-3 minutes. Season with remaining 1/2 teaspoon salt and 1/4 teaspoon pepper.
Spread the spinach-mushroom mixture evenly in the bottom of the prepared baking dish.
In a mixing bowl, combine cream of mushroom soup, sour cream, chicken broth, 1/2 cup Parmesan, Italian seasoning, and red pepper flakes if using. Stir until smooth.
Lay seared chicken breasts over the spinach mixture. Pour the sauce evenly over the chicken.
Top with shredded mozzarella and remaining 2 tablespoons of Parmesan.
Cover with foil and bake for 25 minutes. Remove foil and bake uncovered for 15-20 minutes until cheese is golden and bubbling.
Let rest 5-10 minutes, then garnish with fresh parsley before serving.