Missing 'install X alongside Y' option if Y is LVM encrypted

I successfully installed 22.04.1 with LVM and encryption in a VM. Then, in order to verify the testcase http://iso.qa.ubuntu.com/qatracker/milestones/437/builds/255601/testcases/1301/results, I again booted the ISO into that VM, but there is no "Install Ubuntu XX.XX alongside SYSTEM YY".

I assume that is because the installed system is encrypted, but since there is at least one utility (partitionmanager) that allows resizing of encrypted partitions, I'm opening this just in case.