I have a couple questions for both you and @pfandung. This might give me a better idea of what's going on.Did you fix it??
I also have the same problem as you? (also I did upgrade from catalina to Big Sur beta 1, then update to beta 2 and beta 3)
If you boot from a Catalina 10.15.6 installer USB, what happens?
(a) No password prompt?
(b) Still asks for password, but it works again?
(c) Still asks for password, still fails?
(d) Something else?
Also, was Catalina a clean install, or was that an upgrade from Mojave or earlier? And same question for the earlier versions, going back to the most recent one that was a clean install. This question may seem crazy, but there was a similar bug in early versions of Snow Leopard (10.6.0, 10.6.1, 10.6.2) that only happened if the most recent clean install was Jaguar (10.2.x). (Yes, that would mean OS X Jaguar was installed on a PowerPC Mac, then it was upgraded to Panther and/or Tiger, then upgraded to Leopard, then cloned or Time Machine restored to an Intel Mac, then upgraded to Snow Leopard.)
By the way, my current ideas for quick fixes are:
(a) Turn off FileVault
(b) Use a Mojave or earlier (Catalina probably won't work) installer USB to erase the internal hard drive -- then reinstall either Catalina or Big Sur
(c) (Not really a quick fix) Wait for Big Sur beta 4 and see if that fixes it
However, I have not yet done enough testing to know for sure that any of these will actually work.