The graph has tree paths IN-1-OUT, IN-2-OUT and IN-3&4-OUT between IN and OUT in the left. I want to make each path to a branch like the right.
What is the name of this operation or the name of this procedure to make a graph into a tree?
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Not tree unless changes such as changing the OUT vertices or removing paths
This picture below does not represent a tree because
where you have many paths between IN vertex and OUT vertex. You could call different OUT vertices with OUT1, OUT2 and OUT3 -- similarly for paths IN-3-OUT and IN-4-OUT so each parallelization increases the number of OUT vertices by one.
Operations to make the graph to tree
The name of the operations contain insertion of vertices and removal/insertion of edges as written in the picture. Other way to see this is to consider graph theory in terms of linear algebra. So
the path matrix $P_{in}$ where $in$ is the root is {{1, out}, {2,out}, {3,out}, {4,out}} while the reduced path matrx $P_{in}^{-1}$ is {{1}, {2}, {3}, {4}} with the last out-edge removed.
Path matrix $P_n$ representation for graph $G$ where $n$ is a root vertex. The $j$th column is a path such that the entry is 1 if the edge in the path and 0 otherwise. (Page 17 of Graphs And Matrices by Babat 2nd ed)
Textbook on Graph Theory using Linear Algebra