Preheat the air fryer to 380°F for 3 minutes. Pat the chicken cutlets dry and season both sides with 1/2 teaspoon kosher salt, 1/4 teaspoon black pepper, Italian seasoning, garlic powder, and red pepper flakes if using.

In a shallow bowl, whisk the egg with the Greek yogurt until smooth. In a second shallow bowl, combine the panko, Parmesan, 1 tablespoon olive oil, and a pinch of the remaining salt and pepper.

Dip each chicken cutlet into the egg-yogurt mixture, letting excess drip off, then press firmly into the Parmesan-panko mixture so the coating adheres in an even layer.

Toss the zucchini and bell pepper with the remaining 1 tablespoon olive oil, remaining salt, and remaining pepper. Air fry at 380°F for 7 to 8 minutes, shaking once, until browned at the edges and just tender. Transfer to a plate.

Place 2 coated chicken cutlets in the air fryer basket in a single layer. Air fry at 380°F for 8 to 10 minutes, flipping halfway, until the coating is golden and the chicken is cooked through. Transfer to a plate and repeat with the remaining cutlets.

While the chicken cooks, stir together the marinara, balsamic vinegar, and chopped basil in a small bowl. The sauce should be thick enough to spoon without running; if needed, use a thicker marinara or drain off excess liquid.

Return all chicken to the air fryer basket, working in a snug single layer or in batches if needed. Spoon tomato-basil sauce over each cutlet and top with mozzarella.

Air fry at 360°F for 2 to 4 minutes, until the sauce is warmed and the mozzarella is melted and lightly spotted. Let the chicken rest for 3 minutes.

Serve the tomato basil chicken with the air-fried vegetables, extra basil, and an optional grain or cauliflower rice base. Spoon any remaining tomato-basil sauce over the vegetables or grain.