Can you please post the output of "dpkg -s cryptsetup" ?

I believe that this issue has been fixed already but you might have an old config file lying around.

I also get this warning.Here is the output of dpkg -s cryptsetup

Package: cryptsetup
Status: install ok installed
Priority: optional
Section: admin
Installed-Size: 377
Maintainer: Debian Cryptsetup Team <[email protected]>
Architecture: amd64
Version: 2:2.0.1-1kali1
Replaces: cryptsetup-luks, hashalot (<< 0.3-2)
Provides: cryptsetup-luks
Depends: cryptsetup-bin (>= 2:1.6.0), dmsetup, debconf (>= 0.5) | debconf-2.0, libc6 (>= 2.15)
Recommends: busybox | busybox-static, console-setup, initramfs-tools (>= 0.129) | linux-initramfs-tool, kbd
Suggests: dosfstools, keyutils, liblocale-gettext-perl
Breaks: hashalot (<< 0.3-2)
Conflicts: cryptsetup-luks
Conffiles:
/etc/cryptsetup-initramfs/conf-hook 7c1314c3f6ebb652e75fd5787206c47f
/etc/default/cryptdisks 756141f7eacf1a272a2f6e51646b3aa4
/etc/init.d/cryptdisks 20b58baefc1aed5021a28e2fb9439edd
/etc/init.d/cryptdisks-early e1cf19de7f8aae9e52a6aa7c244fe65d
Description: disk encryption support - startup scripts
Cryptsetup provides an interface for configuring encryption on block
devices (such as /home or swap partitions), using the Linux kernel
device mapper target dm-crypt. It features integrated Linux Unified Key
Setup (LUKS) support.
.
Cryptsetup is backwards compatible with the on-disk format of cryptoloop,
but also supports more secure formats. This package includes support for
automatically configuring encrypted devices at boot time via the config
file /etc/crypttab. Additional features are cryptoroot support through
initramfs-tools and several supported ways to read a passphrase or key.
Homepage: https://gitlab.com/cryptsetup/cryptsetup

Same output as @usama.

I have this warning on all my Kali machines including fresh installed one (2 week old).

Same here.. for this for some time now

This got fixed as we no longer have any CRYPTSETUP=y setting currently. But we had to reintroduce it for 0004945. But I reported the problem that it should not warn for this case to Debian, so it should hopefully be fixed soon.

See https://bugs.debian.org/cgi-bin/bugreport.cgi?bug=908220#24 where the maintainer said he would fix it.