More information could be found on this link. What it says that it tries to run for some/few iterations to see if the loop can converge. If it does then good enough, but if it does not then it throws an error. It is then left to the user to add some delay/memory blocks to kind of break the loop.
Alternatively, you could set the diagnostics to error out when an algebraic loop is detected instead of giving a warning and attempting to continue forward. This will point you to the location where the loop is detected and you may then introduce some blocks manually.
Although, this link does mentions about LineSearch and TrustRegion as types of AlgebraicLoopSolver, I believe you will have to raise a query with the Technical Support to understand it better.
