Boot fails when disk encryption is enabled

Version:
Assisted-ui-lib version: 1.5.37

Hardware:
Model PowerEdge R740
BIOS Version 2.5.4
iDRAC Firmware Version 5.00.00.00

Enabled disk encryption for the cluster and generated ISO.
Booted the server with this ISO and proceeded with deploying SNO.

The deployment got stuck "Installing 7/10" - look at the attached image.

Checking the console of the server, the boot doesn't complete and fails into emergency target and constantly reboots - look at the attached image.

curl -s -H "Authorization: Bearer $TOKEN" -H 'Content-Type: application/json' https://api.stage.openshift.com/api/assisted-install/v1/clusters/91441aee-3139-49a9-9ccd-163d050fa798 |jq .disk_encryption
{
"enable_on": "all",
"mode": "tpmv2"
}