Preheat the oven to 350 degrees. In a small bowl, whisk together the flour, baking soda, baking powder, and salt. In a separate bowl, whisk together the oil, sugar, eggs, preserves, and vanilla.
Stir in the diced strawberries.
Pour the dry ingredients into the wet. Fold until just combined.
Pour the batter into a 8x8 metal pan lined with parchment paper.
Bake for 40-45 minutes, covering loosely with foil halfway through if needed. A toothpick should come out mostly clean when inserted into the center when the cake is done. Cool on a wire rack for about 30 minutes before removing and cooling.
While the cake cools, using an electric hand mixer or stand mixer on medium high, beat together the cream cheese, butter, confectioners sugar, and vanilla, until smooth.
Fold in the strawberry preserves.
Once the cake has cooled completely, spoon all of the frosting on top and spread into an even layer. Garnish with the fresh strawberries right before serving.