So to double check my understanding of this article and the linked one that led to it[1], the issue is: 1. the TPM does not require a password to get the decryption keys 2. bootup decryption passwords are checked by code , before asking (using?) the TPM's data (passwordless, because the bootup code is trusted) 3. exhausting multiple layers of retries causes ^ part 2's code to accidentally get/use the decryption data…
If that re-reading is correct: yeah, there's not much choice but to put all hope in your code + the TPM, since you essentially can't wait for a password. You get what you pay for in that case - no password means no password, so you're inherently vulnerable to exploits like this.
The linked article, https://hmarco.org/bugs/CVE-2016-4484/CVE-2016-4484_cryptset... , seems to describe this kind of setup: the exploit gets you root in the boot partition only, but not any encrypted volumes, so encrypted data is still encrypted. An attacker could get access to anything not protected otherwise though, e.g. unencrypted volumes and hardware, which is a potentially big problem for cloud environments but not so much personal device theft (they already have the hardware).