Clone from external drive to SSD will not open

Using Carbon Copy I tried to clone a backup from an external SSD shown in Diskutil as 'USB External Physical Volume * Mac OS Extended (Journaled). The internal SSD is Apple's APPLE SSD AP0256J Media and the volume in Container Disk1 is APFS Volume • APFS (Encrypted). CCC completed the clone successfully but when I try to boot to the internal instance it will not accept my password. I went through the Reset from iCloud routine and still it will not accept the password.

Is the problem because of the cloning from unencrypted to encrypted volumes, or the volume's format difference, or some other mismatch?