I think I solved this one. Someone should confirm. This is a boot race
condition. The login form loads in Plymouth / GDM and THEN a fraction of
a second later, the i915 kernel module loads. This tilts the passphrase
part of the boot sequence.

Solution is to load i915 earlier. In /etc/initram-fs/modules:

# List of modules that you want to include in your initramfs.
# They will be loaded at boot time in the order below.
#
# Syntax:  module_name [args ...]
#
# You must run update-initramfs(8) to effect this change.
#
# Examples:
#
# raid1
# sd_mod
i915
zfs
snd-usb-audio
spl

I added i915 as the very first thing to load. Then update your initram-
fs

$> sudo update-initramfs -u

Add quiet splash to your /etc/default/grub again

$> sudo update-grub

reboot.

It then works for me in the graphical form.

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https://bugs.launchpad.net/bugs/2092649

Title:
  Can't enter passphrase for encrypted disk on splash screen after
  kernel updated to 6.8.0-51-generic

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