Password Protected DMG Won't Mount After Yosemite Upgrade

Question

I followed this guide to set up a password protected folder when I had Mavericks. After upgrading to Yosemite, the password protected DMG file will not mount. Double clicking the DMG opens a password prompt, I enter password, prompt closes, then nothing.

It's not a password issue because a wrong password throws an error -- a correct password closes the password prompt and doesn't mount the image.

Has anyone had this issue and been able to recover their files?

Edit: I tried mounting with hdiutil attach, and it hangs after asking for pw.

Console log displays the following after entering password:

11/29/14 5:20:08.383 PM HWMonitor[88983]: ATA block storage device appeared 50899
11/29/14 5:20:09.542 PM QuickLookSatellite[91382]: In -[NSApplication(NSQuietSafeQuit) _updateCanQuitQuietlyAndSafely], _LSSetApplicationInformationItem(NSCanQuitQuietlyAndSafely) returned error -50
11/29/14 5:20:09.882 PM ntfs-3g[91774]: Version 2010.10.2-mac external FUSE 27
11/29/14 5:20:09.882 PM ntfs-3g[91774]: Mounted /dev/rdisk5 (Read-Write, label "", NTFS 3.1)
11/29/14 5:20:09.883 PM ntfs-3g[91774]: Cmdline options: norecover,nfconv,auto_xattr,local,nodev,noowners,nosuid,defer_permissions
11/29/14 5:20:09.883 PM ntfs-3g[91774]: Mount options: auto_xattr,local,nodev,noowners,nosuid,defer_permissions,allow_other,nonempty,relatime,fsname=/dev/disk5,volname=
11/29/14 5:20:09.883 PM ntfs-3g[91774]: Ownership and permissions disabled, configuration type 1
11/29/14 5:20:09.889 PM ntfs-3g[91774]: Unmounting /dev/rdisk5 ()

Answer 1

From the log, it looks like the disk image somehow got formatted in NTFS, rather than OS X's native format, Mac OS Extended... and the ntfs-3g software you have installed isn't mounting it properly for some reason. You might be able to disable ntfs-3g, mount it and let OS X's built-in NTFS implementation mount it. This'll give you read-only access, but you could create a new encrypted disk image (be sure to use "Mac OS Extended (Journaled)" format), and copy the contents to the new image.