Ok, copying my workarounds here and closing the other report:

Volume Group metadata had to be upgraded manually with

vgck --updatemetadata yourvgname

The VG name was somehow changed from lvm-name to just name and I had to
edit /etc/crypttab and update-initramfs -u -k all

Also cryptsetup-initramfs package was deleted for some reason, had to
re-install it in chroot. Maybe it happened because I have disabled
installing recommended and suggested packages or maybe because none of
*buntu-desktop packages are installed on my system. Not sure if I have
to report it as a separate problem, please advise.

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https://bugs.launchpad.net/bugs/1874381

Title:
  LVM device unavailable after 18.04 to 20.04 upgrade Timed out waiting
  for device /dev/mapper/s5lp8--v g-home

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