I don't have the hardware, so I won't be able to check this on my own. I caught the bug by looking at the output of /proc/crypto that @chunkeey posted here
@jeff, @chunkeey can you also confirm if the patch works? I just mean that /proc/crypto should show blocksize=1 for ctr(aes) with the ctr-aes-qce driver.
I don't necessarily think that this will bring up rfc3686 support on its own (I'm just hoping, really); it may require more effort, but the block size should be fixed, so, I will send patches to openwrt and upstream after confirmation.