Preheat oven to 325F (165C). Grease a 9x13 inch baking pan and line with parchment paper, leaving overhang on the two long sides for easy removal.
Grate carrots on the FINE side of a box grater. Measure 2 1/2 cups loosely packed. Do NOT squeeze or drain the moisture is essential for texture.
Whisk flour, baking powder, baking soda, salt, cinnamon, ginger, nutmeg, and allspice in a medium bowl until evenly combined. Set aside.
Whisk vegetable oil, brown sugar, and granulated sugar in a large bowl for 1 minute. Add eggs one at a time, whisking after each. Add vanilla. Stir in grated carrots until evenly distributed.
Add dry ingredients all at once. Fold gently with a rubber spatula until no white streaks remain. Do not overmix. Fold in optional add-ins last. Pour into prepared pan and spread evenly.
Bake at 325F for 27 to 32 minutes, until a toothpick inserted in the center comes out with just a few moist crumbs. Edges should appear set and just beginning to pull from the pan. Cool completely in pan, minimum 60 minutes.
Beat cream cheese and butter on medium speed for 2 minutes until smooth. Add sifted powdered sugar one cup at a time on low. Add vanilla, salt, and cornstarch if using. Beat on medium-high for 1 to 2 minutes until fluffy.
Spread frosting evenly over cooled bars with an offset spatula. Run knife under hot water, dry completely, score surface first, then press through each line. Wipe knife between every cut. Cut 4 columns x 4 rows for 16 bars. Garnish with walnuts and cinnamon. Refrigerate until serving.