Preheat large pan on medium heat. Add oil, butter, and onions, and a pinch of salt and pepper. Stir and cook on medium low for 5 to 8 min until translucent, stir occasionally.
Cook gnocchi according to package directions, then drain.
Add all pesto ingredients to food processor, using 1/3 cup olive oil. Blend, scraping down sides as needed. Drizzle in a bit more oil to thin, but still be quite a thick pesto.
Add flour to onions, stir, then drizzle in the vegetable broth, stirring. Bring to simmer and cook gently for 3 min, stirring occasionally as it thickens. Stir in heavy cream, salt and pepper. Add gnocchi, stir, and stir in the pesto. Top with red chili flakes, and more parmesan if desired.
Notes
*if used grated (crumbles) dairy free parmesan instead, start with 1/4 cup and add more if desired.