Prep the chicken. Pat the chicken dry with paper towels. If using breasts, pound to an even 1/2–3/4 inch thickness so they cook evenly.
Season generously. In a bowl, mix olive oil, garlic, onion powder, thyme, smoked paprika, salt, and pepper.
Add chicken and toss to coat. Let it sit while you prep the mushrooms—5 to 10 minutes is enough.
Prep the mushrooms. Wipe mushrooms clean and halve or slice thickly. Toss with a drizzle of olive oil, a pinch of salt and pepper, and the lemon zest.
Preheat the air fryer. Heat to 380°F (193°C) for 3 minutes.
Lightly spray the basket with nonstick spray.
Load the basket. Arrange chicken in a single layer with a little space between pieces. Scatter mushrooms around and in between. If your air fryer is small, cook in two batches for best browning.
Air fry. Cook at 380°F for 10 minutes.
Shake the mushrooms halfway through so they brown evenly.
Flip and finish. Flip the chicken. Cook 5–8 minutes more, until the internal temp reaches 165°F (74°C) at the thickest part. Mushrooms should be golden and tender.
Add lemon and butter. Remove the basket and immediately toss the hot mushrooms with the butter.
Squeeze half a lemon over everything. Taste and adjust salt and pepper.
Rest and garnish. Let chicken rest 3 minutes. Sprinkle with chopped parsley and serve with extra lemon wedges.