Place a large saute pan or cast iron skillet over medium heat. Add olive oil along with onion and garlic cloves. Cook until onion becomes translucent.
Add red bell pepper and cook for about 2 minutes, then add squash, and zucchini. Cook for about 6-8 minutes, until veggies are soft, then add plum tomatoes along with salt, oregano, sage, and garlic powder, and cook for another 2 minutes, until the tomatoes begin to burst. Remove veggies from pan and set aside.
To the hot pan, add olive oil and butter. Add the gnocchi and cook for about 1-2 minutes per side, until browned. Then add the veggies back to the pan along with lemon zest, juice, parsley and basil and mix. Sprinkle with a bit more salt before serving!