When installing 4.16 UPI BM with TANG or TPM disk_encryption, the ignition fails with the following errors:

~~~
Entering emergency mode. Exit the shell to continue.
Type "journalctl" to view system logs.
You might want to save "/run/initramfs/rdsosreport.txt" to a USB stick or /boot
after mounting them and attach it to a bug report.

:/# systemctl status ignition-ostree-growfs.service --no-pager -l
× ignition-ostree-growfs.service - Ignition OSTree: Grow Root Filesystem
     Loaded: loaded (/usr/lib/systemd/system/ignition-ostree-growfs.service; enabled; preset: enabled)
     Active: failed (Result: exit-code) since Wed 2024-06-12 19:52:32 UTC; 1min 31s ago
    Process: 3725 ExecStart=/usr/sbin/ignition-ostree-growfs (code=exited, status=1/FAILURE)
   Main PID: 3725 (code=exited, status=1/FAILURE)
        CPU: 242msJun 12 19:52:29 localhost systemd[1]: Starting Ignition OSTree: Grow Root Filesystem...
Jun 12 19:52:30 localhost ignition-ostree-growfs[3753]: CHANGED: partition=4 start=1050624 old: size=6037504 end=7088127 new: size=936652431 end=937703054
Jun 12 19:52:32 localhost ignition-ostree-growfs[3889]: Device size is not aligned to requested sector size.
Jun 12 19:52:32 localhost systemd[1]: ignition-ostree-growfs.service: Main process exited, code=exited, status=1/FAILURE
Jun 12 19:52:32 localhost systemd[1]: ignition-ostree-growfs.service: Failed with result 'exit-code'.
Jun 12 19:52:32 localhost systemd[1]: Failed to start Ignition OSTree: Grow Root Filesystem.:/# systemctl status ignition-ostree-transposefs-save.service --no-pager -l
× ignition-ostree-transposefs-save.service - Ignition OSTree: Save Partitions
     Loaded: loaded (/usr/lib/systemd/system/ignition-ostree-transposefs-save.service; enabled; preset: enabled)
     Active: failed (Result: exit-code) since Wed 2024-06-12 19:52:47 UTC; 2min 48s ago
   Duration: 32.567s
    Process: 4654 ExecStart=/usr/libexec/ignition-ostree-transposefs save (code=exited, status=32)
   Main PID: 4654 (code=exited, status=32)
        CPU: 4msJun 12 19:52:46 localhost systemd[1]: Starting Ignition OSTree: Save Partitions...
Jun 12 19:52:46 localhost ignition-ostree-transposefs[4654]: Moving rootfs to RAM...
Jun 12 19:52:46 localhost ignition-ostree-transposefs[4654]: Mounting /dev/disk/by-label/root ro (/dev/dm-0) to /var/tmp/mnt
Jun 12 19:52:46 localhost ignition-ostree-transposefs[4657]: mount: /var/tmp/mnt: /dev/mapper/root already mounted on /sysroot.
Jun 12 19:52:47 localhost systemd[1]: ignition-ostree-transposefs-save.service: Main process exited, code=exited, status=32/n/a
Jun 12 19:52:47 localhost systemd[1]: ignition-ostree-transposefs-save.service: Failed with result 'exit-code'.
Jun 12 19:52:47 localhost systemd[1]: Failed to start Ignition OSTree: Save Partitions.
Jun 12 19:52:47 localhost systemd[1]: ignition-ostree-transposefs-save.service: Triggering OnFailure= dependencies.:/# lsblk 
NAME     MAJ:MIN RM   SIZE RO TYPE  MOUNTPOINTS
sda        8:0    0 447.1G  0 disk  
sdb        8:16   0 447.1G  0 disk  
|-sdb1     8:17   0     1M  0 part  
|-sdb2     8:18   0   127M  0 part  
|-sdb3     8:19   0   384M  0 part  
`-sdb4     8:20   0 446.6G  0 part  
  `-root 253:0    0   2.9G  0 crypt /sysroot/sysroot/ostree/deploy/rhcos/var
                                    /sysroot/usr
                                    /sysroot/etc
                                    /sysroot
                                    /sysroot/sysroot
                                    
:/# lsblk -t /dev/sdb
NAME   ALIGNMENT MIN-IO OPT-IO PHY-SEC LOG-SEC ROTA SCHED      RQ-SIZE  RA WSAME
sdb            0   4096      0    4096     512    0 mq-deadline
|                                                                   64 128    0B
|-sdb1         0   4096      0    4096     512    0 mq-deadline
|                                                                   64 128    0B
|-sdb2         0   4096      0    4096     512    0 mq-deadline
|                                                                   64 128    0B
|-sdb3         0   4096      0    4096     512    0 mq-deadline
|                                                                   64 128    0B
`-sdb4         0   4096      0    4096     512    0 mq-deadline
                                                                    64 128    0B
  `-root
               0   4096      0    4096    4096    0                    128    0B
~~~

Latest "4.15.0-0.nightly-2024-06-12-223752" is not showing this problem and the error was confirmed with SNO and Ha topologies, please look into this ASAP.

4.16.0-0.nightly-2024-06-13-031814

Always

1. Create butane template to enable TPM or TANG disk encryption as per official doc (https://docs.openshift.com/container-platform/4.15/installing/install_config/installing-customizing.html#installation-special-config-storage-procedure_installing-customizing)
2. Do not enable disk_mirroring, only disk_encryption
3. Deploy UPI BM

Ignition failure (ignition-ostree-growfs.service + ignition-ostree-transposefs-save.service)

Successful ignition & installation

Possible upstream related bug https://github.com/coreos/fedora-coreos-tracker/issues/1384

rdsosreport files from SNO deploy available here: https://drive.google.com/drive/folders/1Qj3XP7O79QoWOEq8YjqopqWKINRoDd5c?usp=sharing