ketralnis is right that this only terminates if an algorithm exists, so the claim that this terminates is equivalent to the axiom of choice.

But I'd also add that you can have a choice function that isn't an "algorithm". An algorithm, at least in the sense I'd generally interpret the word, has finitely many instructions and at most countably many steps. If we have uncountably infinitely many uncountably infinite sets, it is possible to have a choice function that can't be described in a finite algorithm.

Like, think about a well-ordering of the reals. If you believe the axiom of choice, then one exists. But you can't tell me what it is, because that would involve handing me infinite amounts of information. And similarly you can't write down an algorithm to produce it, without writing down infinite amounts of data.