This feels a little bit crazy, but I've tried like 20 times with the same results.
When I choose the first boot option, after an update (ostree 0) I cannot boot. It behaves as if I have mistyped my ssd's encryption password.
However, when I choose (ostree 1) everything works fine.
I did just try to enable virtualization as well, so that's at least an extra factor.
I'm running a Framework 13 laptop, AMD. And here's the summary of updates that show up when I check for updates after booting to the older boot option (attached as file).
The last important thing I can think of is my default keyboard layout is colemak. The hard drive encryption has been qwerty the whole time, and still shows "US", and I did try typing it with both layouts. I don't think that's the problem, but it is an oddity about my setup, just in case.
The only thing that seems possible is a Framework firmware update, so I'll be doing some googling about a similar issue with that, but curious if anyone here has experienced the same thing.