What plymouth theme / frontend are you using?  I'm able to reproduce an
issue like this with plymouth-theme-ubuntu-text: the prompt is shown,
but is then almost immediately overwritten when the screen refreshes to
show the 'Continue to wait, [...]' message.  But if I start typing, it's
captured as a passphrase and I'm able to unlock the disk - and all disks
are mounted correctly.

So I think this is a bug in the text theme.  But I don't see any way
that this could be a regression since 13.04, because the text theme
hasn't changed since raring.  So maybe instead something has changed
with your hardware that causes the text splash to be used instead of the
graphical splash?  Have you recently enabled nvidia/fglrx binary drivers
for your system?

** Changed in: cryptsetup (Ubuntu)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/1225136

Title:
  13.10 regression: No password asked for encrypted partitions during
  boot

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