Ina large skillet over medium heat, melt butter with olive oil.
Add mushrooms and cook for 10-12 minutes, stirring occasionally. The mushrooms should start to turn golden brown and release their moisture.
Transfer the mushrooms to a plate and tent with foil to keep warm while you make the sauce.
In the same skillet, add garlic and cook for about 1 minute.
Whisk in cream cheese, Parmesan cheese, and heavy cream. Continue stirring until the mixture is smooth, creamy, and all the cheese has melted.
Sprinkle in the Italian seasoning, salt, and pepper. Stir well to combine and let the mixture simmer for 2-3 minutes, allowing the flavors to come together and the sauce to thicken slightly.
Add chicken broth and whisk to combine, loosening the sauce as needed.
Add the mushrooms back into the skillet, tossing gently to coat them evenly in the creamy sauce.
Remove from heat and sprinkle with chopped fresh parsley, if desired. Serve immediately.