I am not an expert on how to run dovecot. I was able to reproduce your
steps to get to the error so that I could find the correct fix.

Running in non-FIPS mode is required so that old passwords (with the
shorter 8 byte salt) will still work. Once all passwords have been
changed (to the new longer 16 byte salt), then FIPS mode can be enabled.
Once the patch is in place, it may require some experimentation to
document the proper steps to give to a customer.

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https://bugs.launchpad.net/bugs/2107773

Title:
  Enabling FIPS causes SALT to be 8 bytes, but OpenSSL 3.0.2 checks if
  SALT is < 16 bytes, breaking Dovecot and possibly other packages.

Status in openssl package in Ubuntu:
  New

Bug description:
  [ Impact ]
  * When one enables FIPS mode on a Jammy system and then attempts to use 
Dovecot to create an encrypted mailbox, the module returns a invalid salt 
length error.

  * FIPS mode requires a 16 byte salt for PBEKDF2 and Dovecot is only
  requesting 8 bytes of salt. The solution is to modify Dovecot to
  request 16 bytes of salt.

  [ Test Plan ]

  * Install Dovecot on the system
    - sudo apt install dovecot-auth-lua dovecot-core  dovecot-gssapi 
dovecot-imapd dovecot-ldap dovecot-lmtpd  dovecot-managesieved dovecot-mysql 
dovecot-pgsql dovecot-pop3d dovecot-sieve dovecot-solr dovecot-sqlite 
dovecot-submissiond
  * Enable mailbox encryption.
    - Add /etc/dovecot/conf.d//mail-crypt.conf to enable mailbox encryption:
  mail_location = mbox:~/mail:INBOX=/var/mail/%u
  listen = *
  mbox_write_locks = fcntl
  namespace inbox {
    inbox = yes
    location =
    mailbox Drafts {
      special_use = \Drafts
    }

    mailbox Junk {
      special_use = \Junk
    }
    mailbox Sent {
      special_use = \Sent
    }
    mailbox "Sent Messages" {
      special_use = \Sent
    }
    mailbox Trash {
      special_use = \Trash
    }
    prefix =
  }
  passdb {
    driver = pam
  }
  userdb {
    driver = passwd
  }

  mail_plugins = $mail_plugins mail_crypt

  plugin {
    mail_crypt_curve = secp521r1
    mail_crypt_save_version=2
  }

  mail_attribute_dict = file:%h/Maildir/dovecot-attributes
  imap_metadata = yes

  * Issue the following command to create an encrypted mailbox:
    - sudo doveadm -o 
plugin/mail_crypt_private_password=e32f1f174d7576716d5df899e7d5cb6b64cdb33584c71882e9f7e1f79f2e695e
 mailbox cryptokey generate -u <username>

  * Verify that no error occurs.

  * Enable FIPS on a Jammy system.
    - sudo pro attach <token>
    - sudo pro enable fips-updates
    - sudo reboot
  (To test FIPS on a Noble system)
    - sudo add-apt-repository ppa:fips-cc-stig/fips-under-certification
    - sudo apt install -y ubuntu-fips 
openssh-server=1:9.6p1-3ubuntu13+Fips1~rc0 \
          openssh-client=1:9.6p1-3ubuntu13+Fips1~rc0 \
          openssh-sftp-server=1:9.6p1-3ubuntu13+Fips1~rc0 \
          --allow-downgrades --yes

  * Reboot

  * Delete the mailbox
    - rm -rf ~/mail

  * Issue the following command to create an encrypted mailbox:
    - sudo doveadm -o 
plugin/mail_crypt_private_password=e32f1f174d7576716d5df899e7d5cb6b64cdb33584c71882e9f7e1f79f2e695e
 mailbox cryptokey generate -u <username>

  * Verify that an error occurs.

  * Update Dovecot to the fixed version.

  * Repeat the commands to delete the mailbox and to create an encrypted
  mailbox.

  * After installing the fix, verify that no error occurs.

  [ Where problems could occur ]

  * The increased salt size of 16 bytes could potentially cause issues
  in allocated data structures, but I've attempted to mitigate this by
  increasing the size of potentially problematic data structures.

  [ Other Info ]

  This is really only needed on systems where FIPS is supported, i.e.
  Jammy and Noble and 26.04.

  --------------
  We deployed Ubuntu Server 22.04 FIPS on Azure as it is now a FIPS Certified 
release.  See https://ubuntu.com/blog/fips-140-3-for-ubuntu-22-04lts

  ~# lsb_release -rd
  Description:    Ubuntu 22.04.5 LTS
  Release:        22.04

  After installing Ubuntu Server 22.04 FIPS, we then deployed Dovecot modules 
as shown here:
  --------------
  # apt search dovecot | grep "install"

  WARNING: apt does not have a stable CLI interface. Use with caution in
  scripts.

  dovecot-core/jammy-updates,jammy-security,now 1:2.3.16+dfsg1-3ubuntu2.4 amd64 
[installed]
  dovecot-imapd/jammy-updates,jammy-security,now 1:2.3.16+dfsg1-3ubuntu2.4 
amd64 [installed]
  dovecot-lmtpd/jammy-updates,jammy-security,now 1:2.3.16+dfsg1-3ubuntu2.4 
amd64 [installed]
  dovecot-managesieved/jammy-updates,jammy-security,now 
1:2.3.16+dfsg1-3ubuntu2.4 amd64 [installed]
  dovecot-mysql/jammy-updates,jammy-security,now 1:2.3.16+dfsg1-3ubuntu2.4 
amd64 [installed]
  dovecot-pop3d/jammy-updates,jammy-security,now 1:2.3.16+dfsg1-3ubuntu2.4 
amd64 [installed]
  dovecot-sieve/jammy-updates,jammy-security,now 1:2.3.16+dfsg1-3ubuntu2.4 
amd64 [installed]

  ~# apt-cache policy dovecot-core
  dovecot-core:
    Installed: 1:2.3.16+dfsg1-3ubuntu2.4
    Candidate: 1:2.3.16+dfsg1-3ubuntu2.4
    Version table:
   *** 1:2.3.16+dfsg1-3ubuntu2.4 500
          500 http://azure.archive.ubuntu.com/ubuntu jammy-updates/main amd64 
Packages
          500 http://azure.archive.ubuntu.com/ubuntu jammy-security/main amd64 
Packages
          100 /var/lib/dpkg/status
       1:2.3.16+dfsg1-3ubuntu2 500
          500 http://azure.archive.ubuntu.com/ubuntu jammy/main amd64 Packages

  -------------

  We attempted to add a mailbox with encryption:
  -------------
  sudo -u vmail doveadm -o 
plugin/mail_crypt_private_password=e32f1f174d7576716d5df899e7d5cb6b64cdb33584c71882e9f7e1f79f2e695e
 mailbox cryptokey generate -u u...@domain.com
  doveadm(u...@domain.com): Error: 
mail_crypt_user_generate_keypair(u...@domain.com) failed: 
error:1C800070:Provider routines::invalid salt length
  doveadm(u...@domain.com): Warning: mailbox cryptokey generate: Nothing was 
matched. Use -U or specify mask?
     Folder Public ID
  x         ERROR: error:1C800070:Provider routines::invalid salt length
  Segmentation fault

  -------------

  After researching the error, I found a single note in the OpenSSL bug tracker 
referencing the error.
  https://github.com/openssl/openssl/issues/24962

  The suggested options are not available as they defeat the purpose of
  being FIPS compliant and certified.

  As a result, Dovecot is completely broken on 22.04 FIPS if using
  encrypted mailboxes.  (At least in our testing)

  Expected behavior:

  The SALT length should match what the required check is, which is 16
  bytes.  Dovecot should utilize an appropriate version to produce
  encryption keys using the required SALT length.

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