I have the same issue here. It's really disturbing as I already invested
some hours getting rid of all the other trouble, cryption caused
together with usplash. Maybe there's a way to do the crypt-stuff within
the initramfs too? Just as workaround untill there's a real solution.
** Changed in: cryptsetup (Ubuntu)
Status: Triaged => Confirmed
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"Enter passphrase" for LUKS/cryptsetup breaks usplash
https://bugs.launchpad.net/bugs/139363
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