Make the Strawberry Reduction:
Puree the strawberries until smooth. Transfer to a saucepan and cook over medium heat for 20 to 25 minutes, stirring often, until reduced to ¾ cup. Let cool.

Prepare the Cake Layers:
Preheat oven to 350°F (176°C). Line three 8-inch pans with parchment paper and grease the sides.
In a bowl, whisk together the cooled strawberry reduction, sour cream, milk, eggs, and vanilla. Reserve 1 cup of this mixture.
In a large mixing bowl, combine flour, sugar, baking powder, baking soda, and salt.
Add the butter one tablespoon at a time on low speed until the mixture resembles wet sand.
Add the larger portion of the egg mixture and mix on medium-high for 45 seconds to 1 minute.
Slowly add the reserved cup of wet mixture and food coloring, if using, and mix until combined.

Bake the Cakes:
Divide the batter evenly between the three prepared pans.
Bake for 24 to 26 minutes or until a toothpick inserted comes out with a few moist crumbs.
Let cool in pans for 2 to 3 minutes, then transfer to wire racks to cool completely.

Make the Frosting:
Pulverize the freeze-dried strawberries into a fine powder.
Beat the cream cheese and butter until smooth.
Add half of the powdered sugar and vanilla and beat until creamy.
Add remaining sugar, strawberry powder, and salt, and mix until fully incorporated.

Assemble the Cake:
Level the cake layers with a serrated knife.
Place the first layer on a cake plate and spread 1 cup of frosting over the top.
Sprinkle with half the chopped strawberries.
Repeat with the second layer, then top with the final cake layer.
Frost the outside of the cake with remaining frosting and garnish with whole or sliced strawberries as desired.