Is there any way to locally read and edit cache.dat database file?

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NO direct WAY !

But you may do it in a local instance of Caché.

A CACHE.DAT database file can be mounted, read and modified by any instance of Caché, including one running "locally", by which I assume you mean "on your workstation".

You still may be confronted with encoding issues:  8 bit vs. UniCode
and the correct sort order ASCII, French, 3 variants of German, ......many more

But your original installation knows this all.