Can confirm that Alberto Pianon's workaround of changing a line in
/etc/crypttab fixes the problem (system no longer hangs on boot).
Confirmed on Kubuntu and Ubuntu 17.04 on systems that had their home
folders encrypted upon install.

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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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