I just upgraded from 14.04 to 16.04, and now I'm experiencing exactly
the same symptoms.  Full disk encryption (including root parition) was
working just fine under 14.04 before the upgrade.  Post upgrade, under
16.04, I'm unable to enter my root partition password.  I type, and
nothing shows up in the text entry box.  I hit enter, and it just sits
there as if the keyboard weren't attached.  I can only boot by disabling
the splash screen by adding "nosplash" to the kernel command line, then
entering my password on the text boot screen.

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https://bugs.launchpad.net/bugs/1386005

Title:
  Password not accepted graphical boot for encrypted root system

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