Apple Warns macOS Catalina Users About Installing macOS 12.3 Beta on Volume With FileVault Enabled
Apple today updated its macOS 12.3 beta release notes to warn macOS Catalina users about a potential boot loop issue when installing the macOS 12.3 or macOS 11.6.4 betas on a separate APFS volume with FileVault enabled.

"If your Mac currently has macOS Catalina installed, installing macOS Monterey 12.3 beta or macOS Big Sur 11.6.4 beta on a volume with FileVault enabled might cause a boot loop when attempting to log back into the previous volume," says Apple.
On a Mac running macOS High Sierra or later, it is possible to install macOS on a separate APFS volume and then switch between versions of macOS, including betas, as if each were on a separate disk. Apple has a support document with more details.
Apple seeded the first beta of macOS 12.3 earlier this week, with a key new feature being Universal Control. macOS 12.3 also features new emoji, deprecates kernel extensions used by Dropbox and OneDrive, removes Python 2.7, and more.
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