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There should have been no way to get to that situation without: 1. Being offered the option to use the passphrase as input to a KDF, with warning about strength. 2. Being warned to store key backup on paper, and that data WILL BE GONE PERMANENTLY if you don't.
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They do use a KDF but only use the resulting key to encrypt the header. It's the approach used by most disk encryption implementations in order to allow the user to rotate the password without having to encrypt the whole drive again, only the header. Easy to make that atomic too.
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It's also worth noting that some devices have an SoC key wrapping feature where the OS can choose to provide the encrypted key and key derivation inputs for the key encryption to the SoC encryption module without ever being able to see the decrypted disk encryption key itself.
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That's how it works on iPhones. Snapdragon has a similar hardware feature and AOSP supports it but it's not actually used on the reference devices (Pixels) probably because they prefer being able to verify that the inline encryption support is actually working as intended.
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