In short, the 4 parallel resistors are the current shunt, the opamp applies a higher voltage to the feedback of the lm2576 when the current increases above the setpoint, this "fools" the lm2576 into thinking the output voltage is too high so it reduces it, thereby reducing the current, and at some point equilibriam is found.
Take careful note of GND and LGND in the schematic, same symbol but different things.