Before starting I highly recommend removing all connected hard drives or installing it inside a VM, otherwise grub might be installed to your hard drive and not the USB flash drive.
There might be an issue with grub not being able to to find the initramfs file and in which case see the references section below.
Boot from the Kali Linux ISO and choose ‘Graphical Install’.
Install normally and setup LUKS and LVM within the installer. I set my hostname to ‘kali’ so the LVM is named ‘kali’ and the root LVM partition is named ‘kali-root’.
After the reboot you shouldn’t be able to boot correctly off of the flash drive. This is because initramfs/grub2 have not been configured correctly by the installer.
You should be at the initramfs console by now. You will need to unlock the partition so you can fix it.123cryptsetup luksOpen /dev/sdb5 kalilvm vgchange -ayexit
You should now be booting into Kali Linux.
Open a terminal and copy the UUID of the crypto_LUKS root partition.
Fix your crypttab. (replace ‘your-uuid’ with the UUID from blkid)
kali-root UUID=your-uuid none luks
Create a new config file for initramfs. (replace ‘your-uuid’ with the UUID from blkid)12/etc/initramfs-tools/conf.d/cryptroottarget=kali,source=/dev/disk/by-uuid/your-uuid,key=none,lvm=kali-root
Install grub to the USB drive (probably not necessary if you unplugged all other drives).
Update initramfs and grub12update-initramfs -u -k allupdate-grub
Reboot to make sure it worked.