I’m running F36 in VMware Workstation. I set up encrypted root on install through Anaconda, and everything works fine. The anomaly is that on boot, when the LUKS prompt appears, the prompt will print again after every character typed. The passphase is still preserved and everything unlocks correctly; it just looks sloppy to have X password prompts appearing where X is the length of the passphrase.
I rebuilt the initrd with dracut (no effect). Crypttab and grub config appear normal.
I’ve encountered this issue as well after the grub update that removes “rhbg” and “quiet”. It is an intentional change, but somewhat surprising if you were not aware of the change. However, the issue is merely cosmetic and it will input the password correctly.
If this helps anyone else: I discovered the problem was with the underlying firmware choice. I rebuilt the VM and set the flag to EFI (vice BIOS). The password prompt now behaves normally and does not replicate itself after every character.