I have the same problem with Kubuntu 14.04.4 Trusty Tahr. The common LTS 
updates yesterday contained 2:1.6.7-Ovanir1~14.04(trusty) which replaced 
2:1.6.1-1ubuntu1 (trusty). While boot I get the message "cryptsetup: unknown 
fstype, bad password or options?" although the password was correct. 
Nevertheless the system boots normally after that.
I solved the problem by forcing Kubuntu to use the old version of cryptsetup by 
using the Muon-package-manager .

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https://bugs.launchpad.net/bugs/1481536

Title:
  "cryptsetup: unknown fstype, bad password or options?" error unlocking
  / decrypting LUKS volume at boot

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