This does not "bypass Linux Disk Encryption". It gives you a root shell but the disk will still be encrypted and you still do not have any access to the decrypted data unless you know the passphrase.

This is no different to booting the system from a different boot medium. This might be an issue on a kiosk-style device, but not a typical personal computer. It only matters where an attacker has physical access to your keyboard and monitor but not physical access to your computer itself.

If the attacker has physical access to your computer itself, then being able to get a root shell this way makes no difference, since there are many other ways to get a root shell anyway; none of which are considered security vulnerabilities.

> Obviously, the system partition is encrypted and it is not possible to decrypt it

Root shell access, but encrypted partitions remain that way. It becomes a case of ensuring a strong enough cipher and key.

Banks might need to consider encrypting the boot partition for ATMs, despite the hassle this can cause.

See the write up here: http://hmarco.org/bugs/CVE-2016-4484/CVE-2016-4484_cryptsetu...