I just upgraded from 14.04 to 16.04, and now I'm experiencing exactly the same symptoms. Full disk encryption (including root parition) was working just fine under 14.04 before the upgrade. Post upgrade, under 16.04, I'm unable to enter my root partition password. I type, and nothing shows up in the text entry box. I hit enter, and it just sits there as if the keyboard weren't attached. I can only boot by disabling the splash screen by adding "nosplash" to the kernel command line, then entering my password on the text boot screen.
I just upgraded from 14.04 to 16.04, and now I'm experiencing exactly the same symptoms. Full disk encryption (including root parition) was working just fine under 14.04 before the upgrade. Post upgrade, under 16.04, I'm unable to enter my root partition password. I type, and nothing shows up in the text entry box. I hit enter, and it just sits there as if the keyboard weren't attached. I can only boot by disabling the splash screen by adding "nosplash" to the kernel command line, then entering my password on the text boot screen.