The confusion is arising because "degree" does not mean the same thing in trees that it means in graphs.
Degree of a node in an undirected graph = Number of edges incident to that node.
Degree of a node in a binary tree = No. of subtrees of that node (0 = no subtree = leaf, 1 = left or right subtree, 2 = both left and right subtrees)
So yes, each "degree" corresponds to an edge in the tree.