Your crypttab contains:
 sda3_crypt UUID=ad243744-ddc3-4839-b492-5ede0ec8aecc none luks,discard

Your fstab does not list sda3_crypt, but it does list your root and home
partitions as being on /dev/mapper/lubuntu-vg.

Is lubuntu-vg a crypted VG?  I.e., is your root partition encrypted -
such as you would get if using the Ubuntu installer's "encrypt whole
disk" option?

This is relevant for understanding where the bug lies, since different
code paths are used to prompt for passphrases in the initramfs (root
partition) vs. after boot (other partitions).

This bug is not reproducible for me here on Ubuntu 16.04.

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https://bugs.launchpad.net/bugs/1574317

Title:
  Prompt to decrypt LVM device is hidden behind (blank) splash screen

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