Bring a large pot of salted water to a boil. As that's coming to a boil, start the sauce.
In a large skillet, cook the diced bacon over medium heat until crispy. Remove the bacon with a slotted spoon and set it aside, leaving the rendered bacon fat in the pan. Add the butter to the pan and melt it. Once melted, add the mushrooms and sauté until golden and tender, about 5–7 minutes. Stir in the shallots and sage, cooking for another 2 minutes until fragrant.
Lower the heat and pour in the heavy cream, stirring to combine. Let the cream simmer for about 3–4 minutes until it thickens slightly. Stir in the Parmesan cheese, black pepper, and salt to taste, keeping the sauce creamy and on low heat.
Cook the sweet potato gnocchi in a large pot of boiling water according to package instructions. Do not drain the water. You need the pasta water.
Add the cooked gnocchi to the skillet, tossing it gently in the sauce. If the sauce is too thick, add some of the reserved pasta water to loosen it up and ensure the gnocchi are well coated. Stir in the crispy bacon and adjust the seasoning with salt and pepper as needed. Feel free to add more Parm and cream if needed as well.
Serve the gnocchi in bowls, topped with extra Parmesan cheese and freshly cracked black pepper.