The purpose of this question is to gain an explanation and understand the formula and rules factorising the quadratic ${x^2}-7x+12$:
$$ {\begin{align}{x^2}-7x+12 = {x^2}-4x-3x+12\\ = x(x-4)-3x+12\\ = x(x-4)-3(x-4)\\ = (x-4)(x-3) \end{align}} $$
looking at the line $= x(x-4)-3(x-4)\\$, the next logical step is to move the $-3$) such that:
$(x-3)(x-4)(x-4)$
Is there a proof or formula that shows why the common factor $(x-4)$ is dropped to result in?
$(x-4)(x-3)$
The factor isn't dropped, you apply the distribution rule
$$ac-bc=(a-b)c$$
not the "Wonderland" rule
$$ac-bc=(a-b)cc.$$
For instance,
$$4\cdot2-3\cdot2=1\cdot2\ne1\cdot2\cdot2.$$
For an intuitive explanation, $$ac-bc=(\underbrace{c+c+c+\cdots c}_{a\text{ terms}})-(\underbrace{c+c+c+\cdots c}_{b\text{ terms}})=\underbrace{c+c+c+\cdots c}_{a-b\text{ terms}}=(a-b)c.$$