Is cryptsetup perhaps being loaded and sent to the background detached from the console? If I boot the kernel without splash I see it complaining about not being able to read the password. It definitely needs to be run interactively.
-- Upstart doesn't activate luks volumes in cryptsetup https://launchpad.net/bugs/62751 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs