During the macos upgrading, I encountered the same issue as "Disk password" required, but password didn't work.
I fixed it with below commands:
Steps:
1. Issue commands "diskutil apfs list" to find out the APFS volume disk name like "disk1s1".
For Macbook pro, the mount point should be "
/Volumes/Macintosh HD
"
For Macbook air, the mount point should be "/Volumes/air"
Let's suppose the APFS volume disk is "disk1s1", and you use Macbook pro(the mount point is "
/Volumes/Macintosh HD
").
2. Issue the following commands to unlock the disk
diskutil apfs unlockvolume disk1s1
3. Issue the following commands to updatePreboot for this disk
diskutil apfs updatePreboot disk1s1
4. Check the error message, you may get error code as "error=-69569"
5. Issue the following one line commands to updatePreboot, check the command carefully again and again.
diskutil apfs updatePreboot disk1s1 -od /Volumes/Macintosh\ HD/Recovered\ Items/private/var/db/dslocal/nodes/Default
After the command issued successfully. hard reboot the macbook, restart. Problem fixed!😉😎😁