I have the same problem, see my comment with workaround here:
https://bugs.launchpad.net/ubuntu/+bug/2091864

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Packages, which is subscribed to linux-signed-nvidia-6.8 in Ubuntu.
https://bugs.launchpad.net/bugs/2074004

Title:
  luks password prompt hangs during boot

Status in linux-signed-nvidia-6.8 package in Ubuntu:
  New

Bug description:
  After upgrading to linux-image-6.8.0-1008-nvidia, I find that the
  prompt that I normally get during boot to enter my luks password for
  my root filesystem is no longer responsive.

  When I get to this prompt, I'll press a key on my keyboard but I don't
  get a dot in the password field. If I press enter, I don't get another
  prompt telling me that the passphrase was incorrect. Even Ctrl-Alt-
  Delete won't restart the system, I have to press the reset button.

  Even if I select the recovery option for this kernel in the grub menu,
  I'll get the kernel boot messages instead of the graphical screen, and
  then a text prompt asking me for my luks password. Even this prompt is
  non-responsive, and pressing enter after entering the password does
  nothing. Again, when at this prompt Ctrl-Alt-Delete doesn't restart
  the system.

  Selecting my previous kernel, 6.5.0-44-generic, in the grub menu
  allows me to enter the password just fine.

  ProblemType: Bug
  DistroRelease: Ubuntu 22.04
  Package: linux-image-6.8.0-1008-nvidia 6.8.0-1008.8~22.04.1
  ProcVersionSignature: Ubuntu 6.5.0-44.44~22.04.1-generic 6.5.13
  Uname: Linux 6.5.0-44-generic x86_64
  NonfreeKernelModules: nvidia_modeset nvidia zfs
  ApportVersion: 2.20.11-0ubuntu82.5
  Architecture: amd64
  CasperMD5CheckResult: unknown
  CurrentDesktop: ubuntu:GNOME
  Date: Wed Jul 24 09:26:44 2024
  InstallationDate: Installed on 2020-06-17 (1498 days ago)
  InstallationMedia: Ubuntu 20.04 LTS "Focal Fossa" - Release amd64 (20200423)
  ProcEnviron:
   TERM=xterm-256color
   PATH=(custom, no user)
   XDG_RUNTIME_DIR=<set>
   LANG=en_US.UTF-8
   SHELL=/bin/bash
  SourcePackage: linux-signed-nvidia-6.8
  UpgradeStatus: Upgraded to jammy on 2022-10-02 (660 days ago)

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