I had this exact issue, and tried many of the solutions that have been suggested here as well. What I have done is disable plymouth in order to get a password input for LUKS.
Add plymouth.enable=0 at the end of line that is beginning with GRUB_CMDLINE_LINUX=
See: Fedora 40 fails to boot with kernel 6.9.5 - #2 by resoluti0n
Unfortunately, havent been able to find a fix for it.