Step 1: Create the Pretzel Caramel Crust
Set aside ½ cup of whole mini pretzels for later layering. Place the remaining 3 ½ cups of pretzels in a food processor. Pulse until you have a mix of fine crumbs and some pea-sized pieces for texture. If using a bag and rolling pin, crush carefully to achieve the same mix. In a medium saucepan over medium heat, melt the butter. Whisk in the granulated sugar until dissolved. Stir in the ½ cup of caramel sauce until the mixture is smooth and fully combined. Remove from heat and immediately stir in the crushed pretzels until every piece is thoroughly coated. Press this mixture firmly and evenly into the bottom of the ungreased 9×13 pan. Use the bottom of a measuring cup to compact it into a solid, unified crust. Place in the refrigerator to set while you prepare the next layers.

Step 2: Prepare the Chocolate Pudding Layer
In a large bowl, whisk together the two boxes of instant chocolate pudding mix and the cold milk. Whisk vigorously for a full 2 minutes until the pudding is very thick and smooth. Whisk in the teaspoon of vanilla extract. Set aside to allow it to finish setting, about 5 minutes.

Step 3: Whip the Cream Cheese Layer
In the bowl of a stand mixer fitted with the paddle attachment (or using a hand mixer), beat the softened cream cheese on medium speed until completely smooth and lump-free, about 2 minutes. Sift in the confectioners’ sugar and add the vanilla extract. Beat on low until incorporated, then on medium-high until the mixture is fluffy, about another 2 minutes. Using a rubber spatula, gently fold in half (about 1 cup) of the thawed whipped topping until no white streaks remain. Be careful not to deflate the mixture.

Step 4: Assemble the First Creamy Layers
Remove the pan with the set crust from the refrigerator. Using an offset spatula or spoon, carefully spread the entire cream cheese mixture over the pretzel crust in an even layer, going all the way to the edges. This layer acts as a crucial moisture barrier to keep the crust crunchy. Next, take the reserved ½ cup of whole mini pretzels and press them lightly into the surface of the cream cheese layer, distributing them evenly. This will create hidden pockets of crunch.

Step 5: Add the Chocolate Pudding Layer
Give the set chocolate pudding a quick stir. Pour it over the cream cheese and pretzel layer. Spread it gently into a perfectly smooth, even layer, being careful not to displace the pressed-in pretzels.

Step 6: Apply the Final Topping & Garnish
Spread the remaining thawed whipped topping (about 1 cup) over the chocolate pudding layer, creating a beautiful white top. Cover the pan with plastic wrap or a lid and refrigerate for at least 6 hours, but ideally overnight. This chilling time is non-negotiable; it allows the layers to firm up, the flavors to meld, and the crust to achieve the perfect chewy-crunchy texture.

Step 7: The Grand Finale – Drizzle and Serve
Just before serving, garnish the dessert. Sprinkle the chocolate chips over the top. Warm the ¼ cup of caramel sauce slightly so it’s drizzle-able, and artfully zigzag it over the entire surface. For a final touch, you can sprinkle a few more crushed pretzels or a pinch of flaky sea salt. To serve, use a sharp knife to cut into squares. For the cleanest slices, dip your knife in hot water and wipe it clean between cuts