I get the same bug on a remastersys generated ISO.

The installer stalls on the following :

Jun 28 16:55:04 custom user-setup: Setting up encryption ...
Jun 28 16:55:04 custom user-setup: od: 
Jun 28 16:55:04 custom user-setup: /dev/urandom
Jun 28 16:55:04 custom user-setup: : No such file or directory
Jun 28 16:55:04 custom user-setup: 
Jun 28 16:55:04 custom user-setup: stty: 
Jun 28 16:55:04 custom user-setup: standard input
Jun 28 16:55:04 custom user-setup: : Invalid argument
Jun 28 16:55:04 custom user-setup: 
Jun 28 16:55:04 custom user-setup: stty: 
Jun 28 16:55:04 custom user-setup: standard input
Jun 28 16:55:04 custom user-setup: : Invalid argument
Jun 28 16:55:04 custom user-setup: 
Jun 28 16:55:04 custom user-setup: Enter your mount passphrase [leave blank to 
generate one]: 

Killing the "head -n1" process gets the installer to finish but the
ecrypt-private mount is not properly setup.

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https://bugs.launchpad.net/bugs/963401

Title:
  Ubiquity crashes during installation

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