The init script fix works for me too. When I started ubuntu with the kernel parameters quiet and splash, the password was visible on the console. When I removed quiet and splash the password was not visible.
-- Upstart doesn't activate luks volumes in cryptsetup https://launchpad.net/bugs/62751 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs