In a large pot, cook the bacon over medium heat until crispy, about 5-7 minutes. Remove the bacon and set aside, leaving some grease in the pot for added flavor.

Melt butter in the reserved bacon grease. Add chopped onions, carrots, and celery, sautéing for 3-4 minutes until softened. Stir in minced garlic and cook for another minute until fragrant.

Sprinkle all-purpose flour into the pot, stirring for about 2 minutes until combined. Gradually add low-sodium chicken broth, followed by diced potatoes and bay leaves. Bring the mixture to a boil, then reduce heat and simmer for 20-30 minutes until the potatoes are tender.

In a bowl, whisk together the flour, baking powder, salt, and herbs. Fold in the beaten egg and milk, mixing until a cohesive dough forms. Knead lightly to combine.

Roll the dough thick and cut it into squares. Drop the dumplings into the simmering soup and cook for about 5 minutes, or until they rise to the surface, indicating they are done.

Stir in the heavy cream, adjusting seasoning with salt and pepper to taste. Serve the soup warm, topped with the reserved crispy bacon for an added crunch.