Where does “úrvalssveit” come from?

úrvalssveit (Icelandic) comes from Icelandic sveit, from Proto-Germanic *swajutą — company, host.

Ancestry of “úrvalssveit”, step by step

Step	Language	Word	Meaning
1	Icelandic	sveit	group, band, team; district, area; countryside,...
2	Proto-Germanic	*swajutą	company, host