If you mean the ZIP file, that won’t work. And even if you did this it would have no effect on the sim at all, so its doubtful that is the cause of frozen fuel levers, unless the un-modded C208 has this issue, and I haven’t read that.
Extracting it should work, as long as you have the folder structure I described above. Be careful how you extract it though. If you simply do that “Extract here”, it should create the “C208-mod” folder inside the “Community” folder. However if you extract to a folder, as in the image below, then it again it won’t work:
You need to “Extract here”. You can also safely delete the “wt-g1000-0.3.4-fix” folder it creates if you are using the NXi.