Ignition fails for luks encrypted root with btrfs

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I found some other discussion and something looking like solution: Root LUKS in ignition - #2 by jlebon
but with this config it just fails more miserably:

storage:
  disks:
    - device: /dev/vda
      partitions:
        - label: root
          number: 4
          # 0 means to use all available space
          size_mib: 0
          resize: true
  filesystems:
    - device: /dev/mapper/root
      path: /
      format: btrfs
      wipe_filesystem: true
      label: root
  luks:
    - name: root
      label: root
      device: /dev/disk/by-partlabel/root
      discard: true
      key_file:
        inline: test-pass-to-be-changed
      wipe_volume: true

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