Was experiencing the same bug
(https://bugs.launchpad.net/ubuntu/+source/cryptsetup/+bug/1375435) and
this workaround worked for me.

HOWEVER, the GRUB_GFXPAYLOAD_LINUX setting I used was "text" (yes,
literally "text"). The wxh was actually supposed to be the graphics
resolution "640x480" (see post #17) but for me, that left it in
graphical mode and failed to allow me to enter my password. Using "text"
forced it into text mode, which works (but is not pretty). At least now
I can login on the first boot.

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https://bugs.launchpad.net/bugs/1359689

Title:
  cryptsetup password prompt not shown

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