Encryption breaks Nextcloudpi login

nc-encrypt appears to break the login process. Here is what happens after a reboot:

I enter the ncp admin password, then enter the correct encryption password several times before it finally accepts it, I enter the admin password again, it gives an internal server error. I go back to nextcloudpi.local:4443 and it displays the activation page again with new passwords, I click activate and it goes to the ncp panel. Everything appears to be fine, but users get an error on the login page.

I’ve been able to reproduce this on multiple installations. This issues occurs after flashing the RPi_10_08_21 image using rpi-imager and updating to the latest ncp and nc.