If the starting graph has $n$ vertices and $m$ edges, and we want to turn it into a tree with $m$ edges, that tree will have $m+1$ vertices; there is no choice in the matter. So there is no question of which choices will have more or less vertex duplication; they will all have the same total amount.
Now, as I understand the problem, starting from a graph $G$ you want to create a graph $G'$ such that:
- each vertex of $G'$ is a copy of a vertex of $G$, but some vertices of $G$ can have multiple copies on $G'$;
- for each edge $vw$ of $G$, we want an edge in $G'$ between some copy of $v$ and some copy of $w$;
- $G'$ is a tree with the minimum possible height (after we choose some vertex of $G'$ to be the root).
Regarding the last requirement, there is a one-way relationship between distances in $G$ and distances in $G'$: if $v,w$ are vertices in $G$ and $v', w'$ are copies of $v$ and $w$ in $G'$, then the distance between $v'$ and $w'$ in $G'$ is at least the distance between $v$ and $w$ in $G$. This holds because, whatever the shortest path is between $v'$ and $w'$ in $G'$, we can follow the same edges in $G$ to get from $v$ to $w$.
As a result, if $G'$ is a rooted tree with root $v'$ (a copy of vertex $v$ in $G$) and height $h$, then every vertex of $G$ is within distance $h$ from $v$. So $h$ is at least the radius of $G$. In at least some cases, it is not possible to have $h$ equal the radius of $G$; for example, if $G$ is a complete graph on $3$ vertices, then $G$ has radius $1$; but it's impossible to create a tree $G'$ with height $1$ out of $G$.
Here is an algorithm that will make $G'$ have height at most one more than the radius of $G$. (So this is definitely within one of optimal, and sometimes the best we can do.)
- Let $v$ be any central vertex of $G$: the distance from $v$ to any other vertex is at most the radius of $G$. (Let $r$ be that radius.)
- As the first step to constructing $G'$, find a shortest-path tree starting at $v$. This is a spanning tree of $G$ such that the distances from $v$ to other vertices are the same in $G$ and in the spanning tree; it has height $r$.
- Now, for every edge $xy$ in $G$ that is not in this spanning tree, clone $x$ an additional time, and connect that copy of $x$ to the vertex $y$ in the spanning tree. (The choice between doing this to $x$ or $y$ is arbitrary.)
The resulting $G'$ has height at most $r+1$, because every vertex is either part of the spanning tree or within one step of the spanning tree, and every vertex on the spanning tree is within $r$ steps from $v$.