Since I've encoutered that bug, I have changed two lines in /etc/default/grub:
#GRUB_GFXMODE=640x480 -> GRUB_GFXMODE=1280x800
GRUB_GFXPAYLOAD_LINUX=1280x800 -> GRUB_GFXPAYLOAD_LINUX=keep

Now the typed text isn't echoed on the side of the screen anymore, but I
still can't enter my password.

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https://bugs.launchpad.net/bugs/1386836

Title:
  Unable to enter password for encrypted root after upgrade

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