Warning: this will delete all your databases located in MSSQLLocalDB. Proceed with caution.
The following command through sqllocaldb utility works for me.
sqllocaldb stop mssqllocaldb
sqllocaldb delete mssqllocaldb
sqllocaldb start "MSSQLLocalDB"
After that I restarted the sql server management studio, and it is successfully established connection through (LocalDB)\MSSQLLocalDB