(No idea if posting to the right place, hopefully someone, somewhere out
there gets some use out of this. It's far too rare for me to go back and
actually post solutions to problems I had and fixed..)

I had the same problem, there's definitely something wrong with the
installer (I was trying to set up 14.04 with encrypted partitions on
different drives, with / on my small SSD and /home /usr /tmp /var and
swap on my HDD). But I played around with it, restarted the
installer/rebooted a number of times, and here's how you work around it:

It's the ordering. It can't cope with setting swap as an encrypted
partition and then creating another partition after that. So, set up all
your actual partitions, including your encrypted containers first. I
believe it necessary to include an encrypted partition for swap, so make
sure to make one of suitable size for it. Don't know if relevant, but I
happened to pick all logical partitions and that worked.

Once you have them all set up, THEN, and only then pin them to actual
mount points (setting this straight away will result in a crash). I
started with swap and then moved on to /home and so on.

Now you have your encrypted partitions, and you don't have to forgo swap
with swapoff!

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https://bugs.launchpad.net/bugs/1205397

Title:
  encrypted install fails because unsafe swap (zram) is detected

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