Given a one-parameter subgroup of a Lie group $G$, we can show that the one-parameter subgroup $\phi : \mathbb{R} \to G$ defines a unique left-invariant vector field $X: \frac{d\phi^\mu(t)}{dt} = X^\mu(\phi(t))$.
However, we know that even in an arbitrary manifold, $M$, given an arbitrary vector field $V$, we can get an one-parameter transformation $\psi(t,x_0): \mathbb{R} \to M$, an integral curve of $V$ going through the point $x_0 \in M$ at $t=0$.
But this one-parameter transformation through $x_0$ does not uniquely define a vector field everywhere on the manifold $M$ (at least from what I think), whereas it does in the case of Lie group $G$.
However, from the proof that I am looking at, I cannot see any special role of the Lie structure of $G$, in fact, the book does not even say $G$ is a lie group so I am not sure if the proof is in fact only applicable to Lie group (the proof does use the Lie structure of $\mathbb{R}$.) However, I do doubt that the proof is applicable to any arbitrary manifold, since I think that an integral curve through $x_0$ only uniquely defines the vectors along the curve, but not at all points on the manifold.
Can someone help me understand this whole confusion better?
Any vector field on a general manifold corresponds to a first order ordinary differential equation on the manifold. Its solution is well known to have group property, and defines a local one-parameter group action: $$ \phi:W\subset\mathbb R\times M\to M $$ that is, $$ \begin{split} \phi(0,x)&=x, \forall x\in M\\ \phi(s,\phi(t,x))&=\phi(s+t,x), (s+t,x)\in W \end{split} $$ and the domain $W$ is an open subset of $\mathbb R\times M$ that contains $\{0\}\times M$.
The same situation applies to a Lie group, but the result is more beautiful, since the domain $W$ is all of $\mathbb R\times G$ for a left-invariant vector field (i.e., it admits a global one-parameter group action). Your one-parameter subgroup is actually the integral curve that passes through the identity element, say $e$ of $G$: $$ \phi':\mathbb R\to G, t\mapsto\phi(t,e) $$ So I guess you need to be clearly aware of the difference and connection between one-parameter group action and one-parameter subgroup.