I had the same issue, too...
Lots of messages saying "Timed out stoppping ...".
The system never rebooted.

Here is what fixed the problem for me:

Firstly, I activated systemd's debug shell using 'systemctl enable 
debug-shell.service'.
Then I initiated a reboot and when the problem occured, I switched to debug 
shell (alt+F9 [/F10 ?] ).
Using 'systemctl list-jobs', I figured out what jobs were running while the 
system hung.

One of the jobs was an "unattended-upgrdes" job.
This job held one ore more files on my root filesystem open.
When I killed that process, the system finished its shutdown and rebooted.


After having removed the package by 'apt-get --purge remove 
unattended-upgrades' the problem didn't arise again.

I am using cron-apt on my servers - therefore I do not necessarily need
unattended-upgrades.

Hopefully this helps as workaround and to find the real cause of the
problem.


** Attachment added: "Screenshots debug shell and shutdown messages"
   
https://bugs.launchpad.net/ubuntu/+source/systemd/+bug/1554795/+attachment/4861267/+files/no-reboot-with-unattended-upgrades.png

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https://bugs.launchpad.net/bugs/1554795

Title:
  timeout on restart or shutdown with LUKS root

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