Can't boot into encrypted Fedora 42 install

Problem

Can’t boot into my new Fedora 42 install. After entering my encryption password I get error message like in this issue, then it timesout and drops me into emergency shell. I had Fedora 42 installed on this exact hardware before and didn’t have any issues similar to this one.

Causes

Might be some kind of installed error because I already had Fedora 42 running on latest kernel without errors just several days ago.

Workarounds

It happens if i boot into 6.14.9-300.fc42 kernel, picking recovery option in grub menu allows me to login successfully. Also while trying to figure out what is the cause of the problem I saw someone recommend removing rhgb and quite options from grub menu boot line to get some additional information and after doing that for some reason I am able to boot. This is really weird because as far am I aware they do not do anything besides reducing output and showing loading screen.

It changes how you are prompted to enter the passphrase.
When the load screen, plymouth, is up is the plymouth that you are typing into.