I don't think so. In both Rust and C, the solution is the same - make the function explicitly fallible, instead of trying to preserve backward compatibility. In C, the function would probably just look like this, returning zero on success and negative on failure:
int crypt2(const char *phrase, const char *setting, char *out);
You can call such a signature "insane" if you want, and that's fine, but it would have averted the bug that is the topic of discussion.