I have the same problem, no solution yet (for few weeks)

1. workaround is to remove "splash" from grub.conf or /etc/default/grub
# GRUB_CMDLINE_LINUX_DEFAULT="quiet splash"
GRUB_CMDLINE_LINUX_DEFAULT="quiet"

sudo vim /etc/default/grub
sudo update-grub

but it removes nice graphical prompt

2. alternative WA is add nomodeset to /etc/default/grub
# GRUB_CMDLINE_LINUX_DEFAULT="quiet splash"
GRUB_CMDLINE_LINUX_DEFAULT="quiet splash nomodeset"

sudo vim /etc/default/grub
sudo update-grub

but this breaks multi screen setup (not only displaylink) HDMI or
displayport are not working on laptop then.

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https://bugs.launchpad.net/bugs/2091864

Title:
  Cannot enter luks password at boot after kernel 6.8.0-50 upgrade

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