I can confirm that this problem still exists with Kubuntu 18.04.

In my case, I'm not even setting up a separate /boot partition as I want
a fully-encrypted disk.

After simply choosing "physical volume for encryption" on the only available 
partition, the Install Now button becomes active but clicking it does nothing. 
Then, clicking the Back button results in the two following errors:
* "An error occurred while creating the keyfile."
* "An error occurred while configuring encrypted volumes. The configuration has 
been aborted."

I have even gotten Ubiquity to crash a few times from various attempts
to set up the scheme.

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https://bugs.launchpad.net/bugs/1510731

Title:
  Bug in ubiquity-frontend-kde: Can't create LUKS encrypted volumes
  during manual disk setup in Kubuntu 17.10 (does not affect Ubuntu,
  Ubuntu MATE, or Ubuntu Budgie)

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