Iirc when I had this problem I solved it by first 1)booting to a live cd
2) chrooting to the new system
3) installing crypt-setup AND lvm
4) doing the update ramfs thing
5) rebooting

The main problem I had was upgrading did not detect the need for the lvm
and encryption packages and update the boot kernel modules accordingly.
Instead it treated it as a regular install/upgrade without encrypted
hard drives.

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https://bugs.launchpad.net/bugs/1003309

Title:
  Boot fails after installing updates, error: “cryptsetup: evms_activate
  is not available"

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