preseed user-password-crypted password cannot be used with d-i user-setup/encrypt-home boolean true option

The following preseed values cannot be used together:
d-i preseed user-password-crypted password
d-i user-setup/encrypt-home boolean true option

I've tested deploying 14.04 and 16.04 using preseed and pxeboot.

If I configure a new user account to be created with a plain-text password the installation completes properly.

If I configure a new user account to be created with an encrypted password the installation screen either hangs if I also have set 'user-setup-udeb passwd/make-user boolean false' or if set 'user-setup-udeb passwd/make-user boolean true' then I'm prompted with 'You entered an empty password, which is not allowed. Please choose a non-empty password.'.

I've also attempted adding 'd-i user-setup/allow-password-empty boolean true' as I thought maybe preseed was stuck because I had not defined a plain-text password, but the install screen just hangs with this option included, and won't prompt for a password at all

Relevant settings:

    d-i user-setup/encrypt-home boolean true

    d-i passwd passwd/make-user boolean true
    d-i user-setup-udeb passwd/make-user boolean true

    d-i passwd/user-fullname string Steve D
    d-i passwd/username string steved
    d-i passwd/user-password-crypted password $5$aqzLdP2M$U8XWa/kOyN3KP8V1ieidmXRNmPaj4FM1axp8qMkgs83

I'm using The Foreman to orchestrate deployments, and I thought perhaps the user-password-crypted value wasn't being received by the client, but I also checked /var/lib/preseed/log on the client and the correct value exists.

I'll also mention I've tried sha-512 hashed passwords as well as the sha-256 hash shown above with the same result.

Client syslog does not generate any errors.

Lastly, I mention 'hang' a few times but this is in relation to the installer screen. At no time is the client system unresponsive. I can get another tty, check logs, etc.