Heat olive oil in a small skillet over medium heat. Add diced red bell pepper and yellow onion, sauté for 3-5 minutes until softened. Add the finely chopped spinach and cook until wilted and any excess moisture has evaporated. Remove from heat and let cool slightly.

In a large mixing bowl, whisk together the blanched almond flour, baking powder, garlic powder, onion powder, salt, black pepper, and Italian seasoning (if using).

In a separate medium bowl, whisk together the softened cream cheese, melted butter, and large eggs until smooth and well combined.

Pour the wet ingredient mixture into the dry ingredient mixture. Stir with a spatula until a thick dough forms. Fold in the cooked and cooled vegetables, shredded sharp cheddar cheese, and shredded mozzarella cheese until evenly distributed.

Preheat oven to 375°F (190°C). Line a baking sheet with parchment paper. Using a 1/4 cup measuring scoop or your hands, form 8 equally sized biscuits (they should be about 2-2.5 inches in diameter and about 1 inch thick). Place them on the prepared baking sheet, leaving some space between each.

Bake for 18-22 minutes, or until the biscuits are golden brown on top and firm to the touch.

Remove from the oven and let cool on the baking sheet for a few minutes before transferring to a wire rack. Serve warm.