Secondly, when you have two files that are exactly the same and encrypt both with the same key, method and parameters then both will have the same hash. ( Though I could imagine Apple doing stuff with padding, and other parameters to make this not happen)
"Investigators said content stored on the encrypted hard drive matched file hashes for known child pornography content."
I read it like this: They figured out that the disk had some incriminating files, as I described in another comment of this thread. To make this work hashes are of no use, they need the original files. For various reasons they might not want to admit that they are in possession of the original files, hence the cryptic and vague phrasing.
I'm sure law enforcement has lists with hashes of incriminating files, but I'm not sure if they are allowed to keep the original files. Even if they are, maybe they just want to avoid public discussion about it.
The claim is bogus.
You do realize that MD5, SHA-1, and SHA-256 are all hashing algorithms? I highly doubt you meant a cipher built from a hash function (easy to do with Feistel net, though nobody does that), especially that IPsec doesn't define any such thing, from what I remember.
Given that you apparently don't understand how encryption and hashing work and relate to each other, you're not in a position to question the technical aspects of the story.
Isn't the point of encryption that it doesn't create a reliable hash - that 2 identical files will appear different while encrypted, as part of the larger encrypted drive?
Or are encrypted-hash collisions possible when small files are encrypted individually?