Is this using AWS EC2?

AWS EC2 is not needed

reproduce:
luks lvs encypt of fs.
add clevis key: bind encryptet partition with clevis-luks to a fqdn tang server name
e.g.
{{{
clevis bind luks -d /dev/sda3 tang '{"url":"http://tangserver.localdomain"}'
}}}
try to decrypt while boot

This report has been filed against an old version of Kali. We will be closing this ticket due to inactivity.

Please could you see if you are able to replicate this issue with the latest version of Kali Linux (https://www.kali.org/get-kali/)?

If you are still facing the same problem, feel free to re-open the ticket. If you choose to do this, could you provide more information to the issue you are facing, and also give information about your setup?
For more information, please read: https://www.kali.org/docs/community/submitting-issues-kali-bug-tracker/