Season diced chicken with salt, pepper, smoked paprika, onion powder, garlic powder, and red pepper flakes.
Heat olive oil in a skillet over medium-high heat and cook the chicken for 5-7 minutes until golden and fully cooked. Remove and set aside.
Reduce heat to medium, then sauté onions until translucent, about 3-4 minutes.
Add red and green bell peppers and cook for an additional 5-7 minutes until softened.
Stir in minced garlic and Italian seasoning, cooking for 1 minute more.
Mix in softened cream cheese and sour cream until smooth and creamy.
Return cooked chicken to the skillet and stir in mozzarella and cheddar until melted and combined.
Warm tortillas until pliable by your preferred method and keep covered to retain warmth.
Fill each tortilla with the cheesy chicken mixture, fold in sides, then roll tightly to form wraps.
Brush the skillet with melted butter and grill wraps seam-side down for 3-5 minutes per side until golden and crispy.
Slice the wraps and garnish with parsley or cilantro before serving.