Restoring user account after FileVault problems

My user account has become unusable following a Mac software update in which (I suspect) I stupidly selected not to recover disk space for FileVault when it was rebooting.
I have mounted the sparseimage from another account and used Disk Utility. However, it can not be verified or repaired.
How do I go about either restoring the account or copying the existing files from that account to a new one? And what files do I need to copy under the user's home directory? What is the easiest way of doing this?
Any help much appreciated.

I get the message 'Your FileVault-protected home folder did not open and needs repair'.
On clicking OK to repair it, I get 'Logging into the account failed because an error occurs'.
As in the original post, verifying or repairing the mounted home folder does not work. I need to be able to move files from this account to a new account.

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