I'm seeing this without LUKS as well (server install using the 2012-09-01 iso); 
first reboot after install fails
(stick at the text mode purple screen with 0-1 dot lit); using an LVM (but no 
luks) install.
It did boot after about the 3rd try on one vm, and the 2nd try on the other vm, 
but I can see the cannot reverse vram

Note also I couldn't get a Grub menu up, which makes me wonder if it's
just the guest kernel that's to blame.

The other observation is that the VM is now getting a 1280x1024 display, while 
I'm sure it used to be smaller;
not sure where the larger size has come from, but perhaps that's more of a 
problem for the VRAM allocation
(although I think it's supposed to have 9MB so should be fine)

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https://bugs.launchpad.net/bugs/1038055

Title:
  graphics fail to initialise correctly, in kvm with cirrus graphics
  (after LUKS install)

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