Preheat oven to 350°F.
In a mixing bowl, combine softened cream cheese, 1 1/2 cups of the mozzarella cheese, cheddar cheese, and Italian seasoning. Mix until smooth and well-combined with a hand mixer or or spatula.
Transfer the cheese mixture into a pie pan or a 8x8-inch casserole dish, spreading it evenly.
Pour the pizza sauce over the cheese mixture, spreading it out gently.
Sprinkle the remaining 1/2 cup mozzarella cheese on top, followed by the Parmesan cheese and pepperoni slices.
Bake for 25-30 minutes, or until the dip is bubbly and the cheese has started to turn golden brown.
Let the dip cool for 5 minutes before serving. Serve with store-bought garlic bread crisps, tortilla chips, a crusty bread like baguette slices or cubed sourdough bread, or homemade garlic bread cheese crisps (see below).