Hi guys.
This is my first post here.

I have created a bootable USB using the latest Kali 2016.1 ISO and followed
all the steps for creating a persistent partition with LUKS encryption.

At boot time I selected "Live USB Encrypted Persistence", entered my
passphrase and it booted ok ... for the first time only.

Any next boot attempt failed, looks like it freezes at:
"Mounting Arbitrary Executable File Formats File System ..."

Interestingly, I am able to boot it by selecting "Live USB Persistence"
and I can mount the LUKS partition manually, no problem.

Also, I am able to boot it by selecting "Live USB Encrypted Persistence"
and entering wrong passphrase (which probably skips the mount of
LUKS partition), and am able to mount LUKS partition manually later.

Does anyone have the idea what's going on here?

I am using 64bit Kali.