> uninstalling cryptsetup and running upgrade-grub seems to fix the
problem in my case

Awesome, thank you Simon! 
For me this fixes the issue with non-ubontu kernel (I don't have the old 
versions of official kernels to try on). 
So the final workaround is: 
- have non-ubuntu (or old?) kernel
- splash ON
- reinstall cryptsetup

Then this kernel boots OK even after repeated reboots. 
Without reinstalling cryptsetup this works only once until broken again.
Latest ubuntu kernels still do not work (for me, do they for you?) 

So at this stage I'm atleast able to use the computer again.

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https://bugs.launchpad.net/bugs/1829620

Title:
  cryptsetup stuck at loading initramfs

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