Preheat the oven to 350°F (175°C).
In a large bowl, combine 8 ounces (226 g) room-temperature cream cheese, ¼ teaspoon dried basil, ¼ teaspoon dried oregano, ¼ teaspoon onion powder, ¼ teaspoon garlic powder, ⅛ teaspoon red pepper flakes, and ⅓ cup grated Parmesan cheese.
Use a hand mixer to beat the mixture until smooth and evenly combined.
Spread the cream cheese mixture in an even layer in the bottom of a 9-inch pie plate.
Spoon 1 cup pizza sauce over the cream cheese layer and spread it evenly.
Evenly sprinkle 1 cup shredded mozzarella cheese, then ½ cup shredded cheddar cheese over the sauce.
Top with ½ cup pepperoni, 6 ounces sliced olives, and ¼ cup diced green pepper, distributing them evenly.
Bake in the preheated oven about 15 minutes, until the dip is hot and the cheeses are melted and bubbling.
Remove from the oven, let rest 2–3 minutes, and serve hot.