It also helps to remove "splash" from the kernel line (for example in 
/etc/default/grub and rerun update-grub). Then you lose the splash screen but 
can normally enter the password.
That's ofcourse just a workaround, since the splash screen is kind of integral 
to the user experience imho. Without it I might as well use debian or arch :D

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

Title:
  Unable to enter password for encrypted root after upgrade

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