I can confirm 16.0 encrypts, and TWRP 3.2.3-0 as expected can’t handle the encryption, so business as usual there.
Installing 16.0 with a data partition encrypted with LineageOS 14.1 to make it work with TWRP (complete Advanced Wipe in TWRP otherwise) doesn’t result in a bootable OS (which worked with 15.1), with boot attempts resulting in:
"Decryption unsuccessful
The password you entered is correct, but unfortunately your data is corrupt.
To resume using your phone, you need to perform a factory reset. When you set up your phone after the reset, you’ll have an opportunity to restore any data that was backed up to your Google Account.
RESET PHONE"
… where RESET PHONE is a button, but does nothing.
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The TWRP factory reset (Wipe - Swipe to Factory Reset) doesn’t help.
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Wiping everything apart from system doesn’t help either.
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Really reformatting system and cache to ext4 instead of only wiping before installing 16.0 doesn’t help either.
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Installing via TWRP’s Install or via TWRP’s ADB sideload makes no difference.
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With or without installing addonsu-16.0-arm-signed.zip makes no difference (I had included it in the install first and then checked again without it).
Seems 16.0 doesn’t like the old encryption … yet?
I know it’s supposed to be TWRP’s fault for not playing along with the new encryption, but 15.1 runs fine with the old encryption.