I'm currently facing this issue on Ubuntu 16.04 too, on a GTX 980 with
nvidia-364 driver (tough its the same on all versions I tried).

I can boot with fail safe graphics mode, but not normally.

Trying to fix this with

GRUB_GFXPAYLOAD_LINUX=wxh
or
GRUB_GFXPAYLOAD_LINUX=text

has no effect, I'm left with a passphrase entry screen that displays all
entered text on the top left, entering my passphrase here does not work.

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https://bugs.launchpad.net/bugs/1359689

Title:
  cryptsetup password prompt not shown

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