It extracts automatically when you run one of the samples that uses the Nutshell database. If you have localdb installed, it should just work. If not, you can create the database (both schema and data) by running the following built-in sample:
C# 7.0 in a Nutshell/Before You Start/Populate Demo Database
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C# 7.0 in a Nutshell/Before You Start/Populate Demo Database