Luks, systemd-boot, btrfs, no password promt


I had a fine working system with grub, luks, btrfs and something came to me and I decided to switch systemd-boot from grub.

My initial disk partitions were three partitions for /boot (512M), /boot/efi (256MB), and a luks partition which is formatted with btrfs. After fiddling around I ended up deleting first ve second partitions and and combined them into one to able to use a single /boot mount point for systemd-boot. My current

nvme0n1       259:0    0 238.5G  0 disk  
├─nvme0n1p1   259:1    0   768M  0 part  /boot
 └─nvme0n1p3   259:2    0 237.7G  0 part  
  └─cryptroot 254:0    0 237.7G  0 crypt    

I created new combined nvme0n1p1 partition with boot flag with fat32 filesystem.

I applied bootctl install. I have copied contents of the old boot directory into the new /boot directory except the old efi and grub related things.

The current file structure is as follows

 tree /boot
|-- 2d3f1b9480f14e94abf8f2ffec257ac9
|-- EFI
|   |-- BOOT
|   |   `-- BOOTX64.EFI
|   |-- Linux
|   `-- systemd
|       `-- systemd-bootx64.efi
|-- amd-ucode.img
|-- initramfs-5.10-x86_64-fallback.img
|-- initramfs-5.10-x86_64.img
|-- initramfs-5.4-x86_64-fallback.img
|-- initramfs-5.4-x86_64.img
|-- intel-ucode.img
|-- linux510-x86_64.kver
|-- linux54-x86_64.kver
|-- loader
|   |-- entries
|   |   `-- manjaro.conf
|   |-- loader.conf
|   `-- random-seed
|-- memtest86+
|   `-- memtest.bin
|-- vmlinuz-5.10-x86_64
`-- vmlinuz-5.4-x86_64

I have modified loader.conf as follows.

default manjaro.conf 
timeout 3
console-mode max

The created manjaro.conf file has the following contends

title Manjaro-Kernel-5.10
linux /vmlinuz-5.10-x86_64
initrd /intel-ucode.img
initrd /initramfs-5.10-x86_64.img
options root=/dev/mapper/cryptroot rw rootflag=subvol=@ resume=UUID=b9134b79-e664-42d2-9f92-0f1ceed6a431 resume_offset=11539712 zswap.enabled=1 zswap.compressor=lz4 zswap.zpool

The changed portions of the /etc/mkinitcpio.conf is as follows

MODULES=(lz4 lz4_compress)
HOOKS=(base systemd autodetect keyboard sd-vconsole modconf block sd-encrypt lvm2 filesystems btrfs resume fsck)
MODULES=(lz4 lz4_compress)

I have rebuilded the images with mkinitcpio -P

During boot, I see the linux boot manager and manjaro selection, but I am not being asked password. After timeout I receive error messages.

Any help is much appreciated .