I'm facing the same issue on Wily (15.10). It's an upgrade from 14.10 
installation. Didn't tried workaround proposed above yet.
Let me know how can I provide more data if you need it. Cheers!

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https://bugs.launchpad.net/bugs/1355617

Title:
  "plymouth ask-for-password" unable to read keyboard input on Xen PV
  console (hvc0)

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