Follow-up Comment #1, bug #314 (project tex4ht):
It should be fixed in the sources now. Until TL is updated, you can use the
following configuration:
\Preamble{xhtml}
\makeatletter
\Configure{ALCitem}
{\HCode{\ifnum \c@ALC@line>1 <br />\fi <span class="ALCitem">}\NoFonts}
{\HCode{</span><span class="alg-indent" style="width:\the\ALC@tlm
;"> </span>}\EndNoFonts}
\makeatother
\Css{.ALCitem {display:inline-block;width:2em;
text-align:right;font-size:0.8em;}}
\Css{.alg-indent{display:inline-block;}}
\begin{document}
\EndPreamble
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