Heat the oven to 375°F. Line a rimmed baking sheet with foil and set a wire rack on top, if available.
In a large bowl, combine the ground turkey, egg, panko, chopped onion, 1 tablespoon of the barbecue sauce, smoked paprika, garlic powder, ½ teaspoon of the salt, and ¼ teaspoon of the black pepper. Mix gently until evenly combined.
Shape the turkey mixture into a compact loaf on the prepared rack or baking sheet. Lay the bacon slices across the loaf, tucking the ends underneath. Brush the bacon with the remaining 1 tablespoon barbecue sauce.
Bake until the bacon is browned and the center of the meatloaf reaches 165°F, about 50 to 60 minutes. Rest the loaf for 10 minutes before slicing so it holds together.
While the meatloaf bakes, place the potatoes and peeled garlic cloves in a large pot. Cover with cold water and bring to a boil. Reduce the heat and simmer until the potatoes are fork-tender, about 15 to 20 minutes. Drain well.
Return the potatoes and garlic to the pot. Add the butter, warm milk, remaining ¼ teaspoon salt, and remaining ¼ teaspoon black pepper. Mash until creamy, adding a little more warm milk if needed.
Slice the rested meatloaf and serve with the garlic mashed potatoes.