We study the impact of channel aging on the uplink of a cell-free (CF) massive multiple-input multiple-output (mMIMO) system by considering i) spatially-correlated Rician-faded channels; ii) hardware impairments at the access points and user equipments (UEs); and iii) two-layer large-scale fading decoding (LSFD). We first derive a closed-form spectral efficiency (SE) expression for this system, and later propose two novel optimization techniques to optimize the non-convex SE metric by exploiting the minorization-maximization (MM) method. The first one requires a numerical optimization solver, and has a high computation complexity. The second one with closed-form transmit power updates, has a trivial computation complexity. We numerically show that i) the two-layer LSFD scheme effectively mitigates the interference due to channel aging for both low- and high-velocity UEs; and ii) increasing the number of AP antennas does not mitigate the SE deterioration due to channel aging. We numerically characterize the optimal pilot length required to maximize the SE for various UE speeds. We also numerically show that the proposed closed-form MM optimization yields the same SE as that of the first technique, which requires numerical solver, and that too with a much reduced time-complexity.