Heat olive oil in a large skillet over medium heat. Add sausage and cook until browned, breaking it into crumbles. Remove and set aside.
In the same skillet, sauté onion until softened. Add butternut squash and cook for 8–10 minutes until tender.
Add garlic, thyme, and sage. Stir until fragrant.
Pour in chicken broth and bring to a simmer. Let it reduce slightly, then stir in heavy cream.
Add gnocchi to the skillet. Simmer for 5–7 minutes or until gnocchi is cooked through and sauce has thickened.
Stir in Parmesan cheese and cooked sausage. Season with salt and pepper to taste.
Serve hot, garnished with fresh parsley if desired.