Can you please try to add the following line after the first line of
/usr/share/initramfs-tools/hooks/cryptroot?
# -- snip --
set -x
# -- snip --
And attach the output of "update-initramfs -u".
** Changed in: cryptsetup (Ubuntu)
Status: Confirmed => Incomplete
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[jaunty] cryptsetup for root on encrypted lvm not called in initramfs.
https://bugs.launchpad.net/bugs/317297
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