Does Schutz correctly show how c can be a dimensionless constant?
No.
The reason why c is dimensionless is that special relativity requires that the units of space and time be interchangeable. That in turn makes it convenient to express both using the same units, such as meters. Doing so causes the speed of light to become $\frac{1 m}{1 m}=1$, which is dimensionless.
That largely answers your question, but if you are interested in more details about why special relativity implies that space and time are interchangeable, this answer about the velocity of time has more details.
Great green gobs of gooey gumdrops, why did someone minus one me for that answer??
It's not an insult against Shultz's textbook if that's your concern. It's just a statement of the flat-out fact: Shultz's explanation is entirely tautological.
Look at it. In the very first sentence Schulz says: "What we shall now do is adopt a new unit for time, the meter." Now come on: If you decide in your very first sentence that you are going to measure time in meters instead of seconds, is it really much of a surprise that from that point forward any kind of velocity, which by definition is a length traveled (measured in length-like meters) in a span of time (measured in time-like meters) is going to end up dimensionless?
So, the text after his first sentence is just noise. What Schulz really should have done was provide some kind of physics-based explanation or intuition as to why he suddenly declared that it is perfectly OK to redefine seconds in terms of meters.
Historically, by far the most important reason why physicists since Einstein feel it is OK to measure time in meters is because special relativity tells us that space and time really are in some sense interchangeable. And while that statement seems "obvious" to sensibilities of modern technological cultures where even people completely uninterested in science are likely to know it, the idea of interchangeable space and time was not clear at all in the 1800s and before.
What Schulz should have said is something more like this:
Since we can represent time as a length-like axis, it is convenient to use the speed of light to create a single definition of the length that applies to both space and time.
An answer like that is more honest to the reader about the lack of profound thinking behind what is, more than anything else, just a handy units choice. Special relativity then provides some real justification for making that choice, but I think it's fair to say that even that is somewhat secondary.
After all, once you've decided to represent time as an actual length-like axis, why not measure it in meters? And once you've decide to measure time in meters, why not make the particularly important and unifying constant $c$ come out to be exactly 1, so that you don't have to keep plugging in long funny-looking decimal numbers into your calculations?
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(Down to -2 now? Wow! And not a single explanation of why by anyone. Remarkable, that!)
Continuing with an important point: Once you've made the conscious choice to measure time in meters, a dimensionless velocity constant is more accurately interpreted as the tangent function of an angle, specifically the angle called $\alpha$ in much of the special relativity literature.
The reason why is not hard to see. Take a look at this figure:
While it sounds at times as though special relativity is all about hyperbolic spaces, when it comes to light cones, dimensionless velocities, and angles such as $\alpha$ that are just another way of expressing velocity, it's really all about traditional trigonometry and the sides of right triangles in thoroughly Euclidean spaces. The hyperbolic views come into play only through a deeper analysis of the implications of $c$ being invariant.
I have to point out a bit of conceptual dyslexia that seems entrenched in how SR and GR text represent the concept of dimensionless velocities.
Look at my earlier figure, where I showed how the SR angle $\alpha$ can be used to defined a dimensionless velocity as $tan(\alpha)$.
So, what kind of space is that figure and its right triangle $\triangle{abh}$ using?
Well, Euclidean of course, with a [++] signature. It's all just good old Pythagorean $h^2=a^2+b^2$, and that's exactly what makes the $tan(\alpha)$ definition of dimensionless velocities possible.
But think about that: Isn't time always supposed to have a different sign from space? That is, for the simplified 2D space of the figure you should have either a [-+] or [+-] signature for $t$ and $x$, but not the [++] (simple Pythagorean triangle) of the figure.
The reason it comes out [++] is that velocities are ratios, and ratios are most directly expressed by using two axes of a Euclidean space with a [++] signature.
So, if you like dimensionless velocities based on the $c$-inspired assumption that $1 m = 3.33564095 ns$, it's hard to avoid also the need for a Euclidean space with a [++] signature to express those dimensionless velocities as simple ratios. Once you allow that you get that nice right triangle with sides $a$, $b$, and $h$, angle $\alpha$, and the desired dimensionless velocity $v=tan(\alpha)$.
However, this deviation from a [-+] signature is also why no one ever bothers to give that poor, lonely hypotenuse $h$ in the figure its own name. It's not that you can't find some geometric use for $h$, it's just that $h$ is a Euclidean mix-up of $t$ and $x$. That's a bit of a bit of a no-no in the [-+...] hyperbolic world of SR. So, most descriptions use only the safer $tan(\alpha)$, which relies only on the space and time deltas $a$ and $b$.
A tendency to avoid getting too deep into [++...] Euclidean spaces is I suspect also why no single, isotropic definition of the meter (call it $m_s$) is used to explain the equivalence of $t$ and $m$, as the inquirer suggested in a comment. But it's still a handy idea. By using an isotropic $m_s$ unit of measure for all lengths in spacetime figures, the equivalences become trivial: $1 m_s = 1 m$ when looking at horizontal $xyz$ distances, and $1 m_s = 3.33564095 ns$ when looking at vertical $t$ distances. Such lengths are of course emphatically not Lorentz invariant, but then again, neither are velocities in general.
My view?
I would humbly suggest that it's probably better to be explicit rather than silent about such deviations. Dimensionless velocities and light cones are examples of SR constructs that use [++...] Euclidean spaces to display and define certain relationships, so why not just say so? As long as you stick to the perspective of a single frame $\phi_0$, ratios (e.g. $v$) and lengths (e.g. $h^2=t^2+x^2+y^2+z^2$) actually provide a visually simple and understandable way to express many of the of the geometric transformations that occur to objects when they are viewed from a single rest frame $\phi_0$.