While the YaST-installer in Tumbleweed still uses LUKS1 for Full Disk Encryption as default (to enable LUKS2 you have to add "YAST_LUKS2_AVAILABLE=1" as kernel command line option), Agama on ALP already supports LUKS2 with the additional authentication mechanism via TPM2.0.

With the last SRs (sr#1090915 and sr#1090821) being accepted into Factory, the sources in ALP and Factory are finally in sync and IMHO it would be a good time to do the switch from LUKSv1 to v2 with the same defaults as we have in ALP.

While grub2 currently does not support Argon2, we are currently tied to use PBKDF2 as encryption-algorithms. Nevertheless, there are also plans to introduce Argon2 support.
Therefore, it would be nice if the functionality could be easily extended to select an Algorithm in the future.

Please let me know if you need any additional information.