I can confirm this bug on a fresh install of Ubuntu, Ubuntu MATE and Xubuntu.
The workaround of changing the crypttab to point to /target/swapfile fixes the 
problem.

I think this bug is quite severe, as new users may set the checkbox,
then experience heavily delayed boot times.

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https://bugs.launchpad.net/bugs/1670336

Title:
  Ubiquity problem with encrypted home option: system hangs because of
  ecryptfs-setup-swap not working with swapfiles

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