Comment # 9 on bug 1057948 from Daniel Molkentin

systemd-escape: invalid option -- 'b'

comes from

modules.d/90crypt/parse-crypt.sh:43:

printf -- 'systemd-cryptsetup@luks$$(dev_unit_name
-$env{ID_FS_UUID}).service"\n'

dev_unit_name (defined in modules.d/99base/dracut-lib.sh:877) runs

systemd-escape -p  "$dev"

but should run

systemd-escape -p -- "$dev"

Leaving you with a systemd-cryptsetup@luks.service file which does not exist.

However, while this should probably be fixed, it's not the root cause.
ID_FS_UUID is provided by udev.