If opting to use the fresh bell pepper, onion and garlic (totally optional) dice and mince them up first.
In a small sauce pan on medium high heat, add butter, diced bell pepper, minced garlic and onion, onion and garlic powders, cayenne, and dried parsley. Saute 4-5 minutes until veggies are soft and seasonings are fragrant.
Leaving heat on medium high, pour in the beer. Simmer and reduce for 3-4 minutes.
Reduce heat to low. Add in the cream cheese, in pieces.
Stir on low, until combined.
Shred the cheddar cheese directly off the block (do not use pre-shredded cheese) and add to pot. Stir on low until completely smooth and melted; about 10-15 minutes.
Serve warm, with soft pretzels. Store in airtight container for up to one week.