I have the same issue on a desktop
Intel i5 4th gen
NVidia GTX970

I have a fresh Install Ubuntu with encryption. By default it uses Nouveau Driver

>From the driver UI, I switch to nvidia, then I reboot and the problem
appear.

Scenarios

1. default kernel loading
It prompt with a low res screen and the disk decryption password doesn't work.
When I type nothing is shown. If I switch terminal with CTRL+ALT+F6 then 
CTRL+ALT+F7, I can see the password in clear Text and it doesn’t reload the UI

2. Most Recent kernel with (Upstart)
same as default

3. Most Recent kernel Recovery 
Enter password in text mode
When Prompt, select "Resume normal boot"
Works fine

4. Previous Kernel (default)
Ask GUI disk password and work fine

5. Previous Kernel Upstart
Ask disk password and hangs there

6. Pervious Kernel Recovery
same as 3 but stock in 1024x768 res

I made the following changes :
GRUB_GFXMODE=2560x1440
GRUB_GFXPAYLOAD_LINUX=keep
GRUB_CMDLINE_LINUX_DEFAULT=”quiet splash noplymouth”

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https://bugs.launchpad.net/bugs/1386005

Title:
  Password not accepted graphical boot for encrypted root system

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