As a reference, 4.4.0-42.62 works fine with LUKS on the XPS13 9350 512GB SSD.
Maybe something else than NVMe this time... :/

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https://bugs.launchpad.net/bugs/1628546

Title:
  4.4.0-40-generic no prompts for disk encryption + loops on dots load
  screen

Status in linux package in Ubuntu:
  Fix Committed
Status in linux source package in Xenial:
  Fix Committed

Bug description:
  Since the upgrade to Ubuntu's 16.04.1 Linux kernel 4.4.0-40.60, it is 
impossible to boot my machine with full root encryption. 
  It will keep loading the purple Ubuntu "dots" loading screen for ages and 
stay there.

  There is no issue rebooting back with kernel 4.4.0-38.57.

  I tried recreating the initramfs to no avail:
  update-initramfs -d -u -k 4.4.0-40-generic

  Hardware is a Dell Laptop: XPS13 9350 16GB/i7/512GB SSD.

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