Heat the oven to 350 degrees.
Heat oil in a large skillet or Dutch oven.
Add onion and garlic.
Sauté until tender for about 3 minutes.
Turn the heat to low and cover to cook for another 7 minutes.
Stir in the oregano, sweetener, red pepper flakes, spaghetti sauce, Italian seasoning, and basil.
Bring to a boil.
Reduce the heat and simmer for 30 minutes.
Season with salt and pepper and stir.
In a shallow plate or bowl, add the Carbquik.
In a separate shallow plate or bowl, add the eggs.
In a third shallow plate or bowl, add the Keto breadcrumbs.
Stir in the fresh parsley, salt, pepper and garlic powder to the breadcrumbs.
Dredge the chicken in the Carbquik.
Dip the chicken in the egg; then, dip the chicken in the Keto breadcrumbs.
Place the chicken in an air fryer liner and insert it into the air fryer.
Set the air fryer to 400 degrees.
Cook the chicken 5 minutes per side. Work in batches until all the chicken is completed.
Meanwhile, mix the mozzarella cheese and Parmesan in a bowl.
Set aside.
When the chicken is done, transfer the chicken to a baking sheet or a large rectangular baking dish.
Spoon some sauce over each piece of chicken and top with cheese mixture.
Bake in the oven until the cheese is melted.