Preheat the oven to 350°F (175°C).
Cook the Bacon: In a large oven-safe skillet, cook the bacon over medium heat until crispy. Remove the bacon with a slotted spoon and set aside, leaving the bacon fat in the pan.
Sear the Chicken: Season the chicken thighs with Italian seasoning, salt, and pepper. Increase heat to medium-high and sear the chicken thighs in the bacon fat for 2-3 minutes per side until golden brown. Remove the chicken from the skillet and set aside.
Sauté the Vegetables: Add the diced onions to the skillet and sauté until softened, about 3 minutes. Add the mushrooms and cook for another 5-7 minutes until browned. Stir in the minced garlic and cook for 1 more minute.
Deglaze with White Wine: Pour in the white wine, scraping up the browned bits from the bottom of the pan. Let it simmer for 1-2 minutes to reduce slightly.
Make the Sauce: Stir in the Dijon mustard, coconut milk, garlic powder, and fresh thyme. Season with salt and pepper. Bring the sauce to a simmer.
Simmer and Bake: Add the chicken thighs back into the skillet, nestling them in the sauce. Transfer the skillet to the oven and bake for 15-20 minutes, or until the chicken is cooked through (internal temperature of 165°F).
Finish and Serve: Stir the cooked bacon back into the sauce before serving. Garnish with fresh parsley if desired.