diff --git a/layers/meta-balena-raspberrypi/recipes-core/initrdscripts/initramfs-framework_%.bbappend b/layers/meta-balena-raspberrypi/recipes-core/initrdscripts/initramfs-framework_%.bbappend
index 02182b112..136d8d6f7 100644
--- a/layers/meta-balena-raspberrypi/recipes-core/initrdscripts/initramfs-framework_%.bbappend
+++ b/layers/meta-balena-raspberrypi/recipes-core/initrdscripts/initramfs-framework_%.bbappend
@@ -20,8 +20,10 @@ do_install:append() {
 
 	install -m 0755 ${WORKDIR}/cryptsetup-rpi ${D}/init.d/72-cryptsetup
 	sed -i -e "s/@@BALENA_NONENC_BOOT_LABEL@@/${BALENA_NONENC_BOOT_LABEL}/g" ${D}/init.d/72-cryptsetup
-
 	install -m 0755 ${WORKDIR}/kexec_pi4_fwgpio ${D}/init.d/73-kexec_pi4_fwgpio
+  if ${@bb.utils.contains('DISTRO_FEATURES','osdev-image','true','false',d)}; then
+	  sed -i -e "s/fail/warn/g" ${D}/init.d/72-cryptsetup
+  fi
 }
 
 RDEPENDS:initramfs-module-cryptsetup:append = " os-helpers-otp gnupg"