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To back up a database in SQL Server Managed Instance to the local file system, you can use the following steps:

1. Open SQL Server Management Studio and connect to the Managed Instance.
2. Right-click on the database you want to back up and select Tasks > Back Up.
3. In the Back Up Database dialog box, select the backup type as Full.
4. Choose the destination as Disk and click on the Add button to select a backup file location on the local file system.
5. Set the backup options such as compression and encryption if required.
6. Click on the OK button to start the backup process.

Once the backup process is complete, you can locate the backup file on the local file system and use it for restoring the database in case of any data loss or disaster recovery.