Set a large cast iron pan over medium heat. Add chopped bacon, and cook until almost dark brown and crispy, about 7-8 minutes.
Add quartered cherry tomatoes, season with a pinch of salt and pepper, and cook until softened, about 3 minutes.
Add sausage, cook until browned and cooked through, about 5 minutes.
Add minced garlic, mix into the other ingredients until fragrant, cooking a total of 1-2 minutes.
Pour in marinara sauce and add granulated sugar, and mix into other ingredients until thoroughly combined. Turn the oven to 350 F. Add uncooked gnocchi, and thoroughly mix into the sauce. Allow the gnocchi to simmer in the sauce as the oven comes up to temperature.
Place the pieces of fresh mozzarella across the top of the gnocchi and sauce, evenly distributing them. Bake the gnocchi and sauce for 10 minutes.
Carefully remove the pan from the oven, and sprinkle the shredded Italian cheese across the surface of the gnocchi and sauce. Turn the oven to high broil, and broil for 2-3 minutes, until cheese is melted and browned.
Remove from the oven, and garnish with finely chopped parsley. Carefully serve hot!