Basically, with the set in "Electric" tuning mode, selecting a station pushbutton will get you close to the preset station, then AFC will tune it the rest of the way. It does this by means of a feedback loop that continuously samples IF signal strength and directs the oscillator control to "pull" the local oscillator signal either high or low, in the direction that gives the greatest output.
The set will still work fine with AFC inoperable, although the tuning presets may be too imprecise to be usable. It's lso possible that they will work fine- the AFC circuit may have been "design overkill" for this application. (Stromberg-Carlson was noted for "never using two bolts when twelve would do.") Probably why they went out of the radio business. Grunow 1291 and RCA 811K/813K/816K sets used a similar AFC circuit and you may be able to locate a junk chassis of these from which you can harvest the necessary differential coil. These show up on eBay fairly regularly. Be aware that this coil is frequently found to be bad in Grunow sets, however.